Question

Q: Ms. Parker deposits $8000 in one simple interest account and $2000 in a second simple interest account. The interest rate on the $8000 account is 2% more than the rate on the $2000 account. If the total yearly amount of interest earned on the $8000 account is $459 more than the interest earned on the $2000 account. Find the interest rate on each account. Please answer in complete details?

Answer 1

rate of first account --- r , the rate in decimals
rate on 2nd account --- r+.02

interest on 1st account = 2000r
interest on 2nd account = 8000(r + .02)

8000(r + .02) - 2000r = 459

8000r + 160 - 2000r = 459
6000r = 299
r = 299/6000 = .0498333
= appr 4.98%
the lower rate is 4.98% , the higher rate is 6.98%


check:
4.98% of 2000 = 99.67
6.98% of 8000 = 558.67
the differ by $459
Yeah!!