You invested $4000 between two accounts paying 2% and 4% annual interest. If the total interest earned for the year was $140, how much was invested at each rate?

Answer :

Given:

$4000 is invested in two accounts paying 2% and 4% annual interest.

The total interest earned for the year was $140.

To find:

The amount invested at each rate.

Explanation:

Let us frame the equation as follows,

[tex]\begin{gathered} 2\text{ \% }of\text{ }x+4\text{ \% }of\text{ }(4000-x)=140 \\ \frac{2}{100}x+\frac{4}{100}(4000-x)=140 \\ 2x+16000-4x=14000 \\ -2x=-2000 \\ x=\text{ \$}1000 \end{gathered}[/tex]

Thus,

The amount invested at 2% interest is $1000.

The amount invested at 4% interest is $3000.

Final answer:

The amount invested at 2% interest is $1000.

The amount invested at 4% interest is $3000.

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