Bob has $4000 invested in an account that earns 4.75% simple interest. He has another account that earns 6.5% simple interest. How much is invested in the 6.5% account if it earned $425.10?

Question

Bob has $4000 invested in an account that earns 4.75% simple interest. He has another account that earns 6.5% simple interest. How much is invested in the 6.5% account if it earned $425.10?

Answer 1

I = r * Po.

I = Interest earned.
r = Annual percentage rate(APR) expressed as a decimal.
Po = Initial investment.

425.10 = 0.065 * Po,
Po = 425.10 / 0.065 = $6540.