Paula invested into two accounts; one pays 7% simple interest and the other pays 8% simple interest. She invested $2000 more in the account paying 8% than in the account paying 7%. At the End of the first year, Paula's total return was $1810. How much did she invest in each account?
A) $14,000 at 7%; $10,000 at 8%
B) $11,000 at 7%; $13,000 at 8%
C) $13,000 at 7%; $11,000 at 8%
D) $10,000 at 7%; $14,000 at 8%

Question

Quizplus · Accepted Answer

Let x be the amount invested at 7%. Then, x + 2000 is the amount invested at 8%. The equation for total interest is 0.07x + 0.08(x + 2000) = 1810. Solving this gives x = 11000, so she invested $11,000 at 7% and $13,000 at 8%.

Paula Invested into Two Accounts; One Pays 7% Simple Interest