Susan invested a total of $13,000 in two accounts. One account pays 4% interest and the other account pays 6% interest. The total return from both accounts was $680.
How much was invested in each account?
Investing different amounts at multiple interest rates can fetch a very good overall return and is an example of proper investment planning. Investors often plan their investments this way by keeping multiple deposits at different banks.
Answer and Explanation:
Let amount invested in one account be X and the other be $13,000 - X. Therefore,
0.04X+.06(13,000-x) = $680
0.04X + 780 - 0.06X = $680
.02X = 100
X = $5,000
$13,000 - X = $8,000
amt invested at 4% rate of interest=$5,000
amt invested at 6% rate of interest=$8,000
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from Financial Accounting: Help and ReviewChapter 5 / Lesson 18