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Answer

↓Steps Explained:↓

An investment of 21000 was made one year ago.

Part of the investment was placed into an account paying s interest at 8%

The remainder of the investment was placed into an account paying s interest at 7%

After one year, you received a total of 1600 in interest. How much was invested in each account?

Calculate Principal Amounts for each fund:

For Fund 1, we invest an unknown amount, let us call it x

For Fund 2, the remaining principal is 21000 - x

Calculate Interest Credit for Fund 1

Since Fund 1 credits interest using the simple interest method, we have 0.08x

Calculate Interest Credit for Fund 2

Since Fund 2 credits interest using the simple interest method, we have 0.07(21000 - x)

Set up a grid with fund details:

	Interest Paid	Principal	Interest Rate
Fund 1	0.08x	x	8%
Fund 2	0.07(21000 - x)	(21000 - x)	7%
Total	1600	21000	--

Calculate x from the grid:

Since both Interest paid columns add up to the total interest earned of 1600, we set up an equation

0.08x + 0.07(21000 - x) = 1600

0.08x + 1470 - 0.07x = 1600

1470 + 0.01x = 1600

Subtract 1470 from each side:

1470 - 1470 + 0.01x = 1600 - 1470

Cancelling the 1470 on the left side, we get:

0.01x = 130

Divide each side by 0.01

Cancelling the 0.01 on the left side, we get:

x = 13000 ← Fund 1 Investment

This means we should 21000 - 13000 = 8000 into Fund 2

Final Answer