Sal Boxer divided a gift of $6000 into two different accounts. He placed $2000 in one account that earned an annual simple interest rate of 8.5%. The remaining money was placed in an account that earned an annual simple interest rate of 9.25%. How much interest did Sal earn from the two accounts after one year?
Help please I seriously don't understand any of this
2000 * .085 + 4000 * .0925
To calculate the interest earned by Sal from the two accounts, we need to calculate the interest earned in each account separately and then add them together.
Let's start with the first account, which had $2000 and an interest rate of 8.5%. To find the interest earned in this account, we can use the simple interest formula:
Interest = Principal * Rate * Time
Here,
Principal = $2000
Rate = 8.5% = 0.085 (convert percentage to decimal)
Time = 1 year
Substituting these values into the formula, we get:
Interest in the first account = $2000 * 0.085 * 1
Now let's move on to the second account, which had the remaining amount ($6000 - $2000 = $4000) and an interest rate of 9.25%.
Again, using the simple interest formula:
Interest = Principal * Rate * Time
Here,
Principal = $4000
Rate = 9.25% = 0.0925 (convert percentage to decimal)
Time = 1 year
Substituting these values into the formula, we get:
Interest in the second account = $4000 * 0.0925 * 1
Finally, to get the total interest earned by Sal, we add the interest from both accounts:
Total interest = Interest in the first account + Interest in the second account
Total interest = ($2000 * 0.085 * 1) + ($4000 * 0.0925 * 1)
Now you can plug these values into a calculator or do the math manually to find the total interest earned by Sal.