Question

Mr. Nkalle invested an amount of $20,900 divided in two different schemes A and B at the simple interest rate of 9% p.a. and 8% p.a. respectively. If the total amount of simple interest earned in 2 years is 3508, what was the amount invested in Scheme B?

Answer 1

Total amount invested =		20900
Let amount invested in Scheme A	x
Amount invested in Scheme B		20900-x
Interest earned on Scheme A for 2years (x*9%*2):	0.18x
Interest earned on B for 2years (20900-x)*8%*2:	3344-0.16x
Total interest = 3508
Therefore,
3508 = 0.18x +3344-0.16x
x= 8200
Thus, amount invested in Scheme-A :		8200
Amount invested in Scheme-B (20900-8200):	12700
Answer is $12,700