You invested $12,000 in two accounts paying 2% and 4% annual interest, respectively. If the...

Question:

You invested $12,000 in two accounts paying 2% and 4% annual interest, respectively.

If the total interest earned for the year was $320, how much was invested at each rate?

Investment:

The investment is to increase money. The individuals or the corporations or the governments invest the money in an option and increase the value of their investment depending on the risk factor.

Answer and Explanation:

{eq}Interest\ @\ 2\%=\$x\\Invested\ @4\%=\$y\\So, x+y=12000\\0.02x+0.04y=320\\Multiply\ Eq\ 1\ with\ 0.02\\\\0.02x+0.02y=240\\Upon\ Solving\ equation\\ 0.02y=80\\y=4000\\ x+y=12000\\ 4000+y =12000\\x=8000 {/eq}


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Investment Risks: Definition & Types

from Finance 305: Risk Management

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