Bill invests his savings into two accounts, one paying 6% simple interest per year and the other paying 12% simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. He gains $6,432 interest in one year. How much did he invest at each rate?

Bill invests his savings into two accounts, one paying 6% simple interest per year and the other paying 12% simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. He gains $6,432 interest in one year. How much did he invest at each rate?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 8E

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Question

Bill invests his savings into two accounts, one paying 6% simple interest per year and the other paying 12% simple
interest per year. He puts twice as much in the lower-yielding account because it is less risky. He gains $6,432 interest
in one year. How much did he invest at each rate?

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