Bill invests his savings into two accounts, one paying 6% simple interest per year and the other paying 12% simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. He gains $6,432 interest in one year. How much did he invest at each rate?

Bill invests his savings into two accounts, one paying 6% simple interest per year and the other paying 12% simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. He gains $6,432 interest in one year. How much did he invest at each rate?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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Question

Bill invests his savings into two accounts, one paying 6% simple interest per year and the other paying 12% simple
interest per year. He puts twice as much in the lower-yielding account because it is less risky. He gains $6,432 interest
in one year. How much did he invest at each rate?

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