Skippy has a total of 10000 to split between two investments

Skippy has a total of $10,000 to split between two investments. One account offers 3% simple interest, and the other account offers 8% simple interest. For tax reasons, he can only earn $500 in interest the entire year. How much money should Skippy invest in each account to earn $500 in interest for the year?

Solution

Let the principal with rate of interest 3 % is x .Therefore principal with rate 8% is 10000-x

Total interest=500

I=I₁+I₂

I₁= .03x      I₂= (10000-x).08

500=.03x + (10000-x).08

500= .03x + 800-.08x

-300= -.05x

x= 6000

Therefore Skippy invest $6000 with rate 3% and 10000-6000=4000 with rate 8%