Question

A total of $15,000 is invested into two accounts. One of the accounts earns 12% per year and the other earns 10% per year. If the total interest earned in the first year is $1600, how much is invested in each account?

1.) Define the variable(s) and what they stand for.
2.) Set up an equation
3.) State the solutions

Answer 1

amount invested at 12% --- x
amount invested at 10% --- 15000-x

.12x + .10(15000-x = 1600
12x + 10(15000-x) = 160000
12x + 150000 - 10x = 160000
2x = 10000
x = 5000

so $5000 invested at 12% and $10000 invested at 10%

check:
.12(5000) + .1(10000) = 1600
YUP!

Answer 2

12