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) A bank customer invests a total of $7000in two savings accounts. One account yields 10% simple interest and the other 11% simple interest. The customer earned a total of $800interest for the year. How much was invested in the 11% account?

Answer :

The amount of money invested in 11% account is $10000

Solution:

Given that, A bank customer invests a total of $7000in two savings accounts.  

One account yields 10% simple interest and the other 11% simple interest.  

The customer earned a total of $800interest for the year.  

Now, let the amount invested in 11% account be $n, then amount in other account will be 7000 – n

The simple interest is given as:

[tex]\text { Simple interest }=\frac{\text {amount} \times \text {rate} \times \text {time}}{100}[/tex]

Then, for 10% account:

[tex]\begin{array}{l}{\text { S. } \mathrm{l}=\frac{(7000-n) \times 10 \times 1}{100}} \\\\ {\text { S. } 1=\frac{(7000-n)}{10}}\end{array}[/tex]

And for 11% account:

[tex]\begin{array}{l}{S .1=\frac{n \times 11 \times 1}{100}} \\\\ {S .1=\frac{11 n}{100}}\end{array}[/tex]

Now, we know that, total simple interest = S.I from 10% account + S.I from 11% account

[tex]800=\frac{7000-n}{10}+\frac{11 n}{100}[/tex]

80000 = 10(7000 - n) + 11n  

80000 = 70000 – 10n + 11n  

11n – 10n = 80000 – 70000

n = 10000

Hence, the amount of money invested in 11% account is $10000  

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