Lorenzo invested $22,000 into two accounts; one pays 4% simple interest and the other pays 7% simple interest. At the end of the first year, Lorenzo's total return was $1150. How much did he Invest in each account?
A) $13,000 at 4%; $9000 at 7%
B) $9000 at 4%; $13,000 at 7%
C) $10,000 at 4%; $12,000 at 7%
D) $12,000 at 4%; $10,000 at 7%

Question

Quizplus · Accepted Answer

Let x be the amount invested at 4% and y be the amount invested at 7%.We have the following system of equations:x + y = 220000.04x + 0.07y = 1150Solving this system of equations, we get:x = 13000y = 9000Therefore, Lorenzo invested $13,000 at 4% and $9000 at 7%.

Lorenzo Invested $22,000 into Two Accounts; One Pays 4% Simple