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

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Bunuel
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An investor placed a total of $6,400 in two accounts for one year. One [#permalink] New post   26 Nov 2018, 23:20
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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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Re: An investor placed a total of $6,400 in two accounts for one year. One [#permalink] New post   27 Nov 2018, 00:04
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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.
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Re: An investor placed a total of $6,400 in two accounts for one year. One [#permalink] New post   27 Nov 2018, 07:29
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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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An investor placed a total of $6,400 in two accounts for one year. One [#permalink] New post   15 Feb 2024, 22:26
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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

Simple Interest = PRT/100 
Since T and Interest are same in both cases, we see that PR = Constant and since ratio of R is 3:5, ratio of P must be 5:3. Hence at 3% rate of interest, amount invested is (5/8)th of 6400.

Total Interest = \(2*\frac{(5/8)*$6400*3*1}{100} = $240\)

Answer (C)

We have used the concept of inverse variation here. Check it out here. 


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Re: An investor placed a total of $6,400 in two accounts for one year. One [#permalink] New post   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
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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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