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# An investor placed a total of \$6,400 in two accounts for one year. One

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Math Expert
Joined: 02 Sep 2009
Posts: 55150
An investor placed a total of \$6,400 in two accounts for one year. One  [#permalink]

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26 Nov 2018, 23:20
00:00

Difficulty:

65% (hard)

Question Stats:

44% (02:48) correct 56% (02:18) wrong based on 19 sessions

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An investor placed a total of \$6,400 in two accounts for one year. One of the accounts earned simple annual interest at a rate of 5 percent, and the other earned simple annual interest at a rate of 3 percent. The investor made no deposits or withdrawals from the accounts. If each account earned the same amount of interest after one year, what was the total amount of interest earned from both accounts?

A. \$128
B. \$144
C. \$240
D. \$256
E. \$512

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Joined: 17 Apr 2018
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Location: Thailand
Concentration: Finance, Economics
GMAT 1: 610 Q46 V28
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Re: An investor placed a total of \$6,400 in two accounts for one year. One  [#permalink]

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27 Nov 2018, 00:04
1
Accounts=X and Y
equals interest; (3/100)X=(5/100)Y
X:Y=5:3
X=(5/8)*6400=4000
Y=(3/8)*6400=2400
Interest=4000*(3/100)+2400*(5/100)=\$240
C.
CEO
Joined: 18 Aug 2017
Posts: 3451
Location: India
Concentration: Sustainability, Marketing
GPA: 4
WE: Marketing (Energy and Utilities)
Re: An investor placed a total of \$6,400 in two accounts for one year. One  [#permalink]

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27 Nov 2018, 07:29
Bunuel wrote:
An investor placed a total of \$6,400 in two accounts for one year. One of the accounts earned simple annual interest at a rate of 5 percent, and the other earned simple annual interest at a rate of 3 percent. The investor made no deposits or withdrawals from the accounts. If each account earned the same amount of interest after one year, what was the total amount of interest earned from both accounts?

A. \$128
B. \$144
C. \$240
D. \$256
E. \$512

SI= P*R*T-(1)

P1+P2=\$6400; P1=6400-P2

since both interests are equal so
P1*.03*1=P2*.05*1

(6400-P2)*.03=P2*.05
Solve we get P2= 2400 and P1= 4000

Find interest using formula in (1)

4000*.03*1= 120 and 2400*.05*1 = 120

total interest = \$ 240 option C
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CEO
Joined: 18 Aug 2017
Posts: 3451
Location: India
Concentration: Sustainability, Marketing
GPA: 4
WE: Marketing (Energy and Utilities)
Re: An investor placed a total of \$6,400 in two accounts for one year. One  [#permalink]

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27 Nov 2018, 07:30
Bunuel wrote:
An investor placed a total of \$6,400 in two accounts for one year. One of the accounts earned simple annual interest at a rate of 5 percent, and the other earned simple annual interest at a rate of 3 percent. The investor made no deposits or withdrawals from the accounts. If each account earned the same amount of interest after one year, what was the total amount of interest earned from both accounts?

A. \$128
B. \$144
C. \$240
D. \$256
E. \$512

SI= P*R*T-(1)

P1+P2=\$6400; P1=6400-P2

since both interests are equal so
P1*.03*1=P2*.05*1

(6400-P2)*.03=P2*.05
Solve we get P2= 2400 and P1= 4000

Find interest using formula in (1)

4000*.03*1= 120 and 2400*.05*1 = 120

total interest = \$ 240 option C
_________________
If you liked my solution then please give Kudos. Kudos encourage active discussions.
Re: An investor placed a total of \$6,400 in two accounts for one year. One   [#permalink] 27 Nov 2018, 07:30
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