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How can 12600 be split between two investments one patying 6 percent annually and one paying 8 percent annually so that the amounts of interest from the two investments are equal?
Wiki User
∙ 12y ago
If you give x money to the bank paying 6% interest, then the amount of interest received is 0.06*x.
If you gave x to the first account, the money left over must be 12600-x, so if you give 12600-x money to the second account, the interest is 0.08*(12600-x)
Now we want both amounts of interest to be equal so,
0.06x = 0.08(12600-x)
=> 0.06x = 0.08*12600 - 0.08x
=> 0.06x = 1008 - 0.08x
=> 0.06x + 0.08x = 1008
=> 0.14x = 1008
=> x = 1008/0.14 = 7200
You give 7200 to the 6% interest account, as you chose to give them x money.
You have 5400 money left to give to the 8% interest account (12600 - x).
Wiki User
∙ 12y ago
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