A 7000 principal is invested in two accounts, one earning 3% interest and another earning 7% interest. If the total interest for the year is $262, then how much is invested in each account?

Question

please answer this question as soon as possible thanks

Answer 1

Assuming simple interest, let’s put x=the amount invested in the 3% account, then 7000-x will be invested in the 7% account.

The combined interest is 0.03x+0.07(7000-x)=262.

So 0.03x+490-0.07x=262, 490-262=0.04x, x=228/0.04=$5700 in the 3% account, so $1300 is invested in the 7% account.