You entered Kente invested a total of $8000. He invested part of the money for 2yr in a stock fund that earned the equivalent of 6.5% simple interest. He put the remaining money in an 18 month certificate of deposit that earned 2.5% simple interest. If the total interest from both investments was $855 , determine the amount invested in each account?

Kente invested part of money for 2 yr in stock fund that earned the equivalent of 6.5 % simple interest.He put remaining money in a 18 month certificate of deposit that earn of 6.5%simple interest.

Let he invested in stock fund be$ x. Remaining money =$(8000-x)

∴He got interest from stock fund was = [tex]\frac{PRt}{100}[/tex]

=$[tex]\frac{x\times6.5\times2}{100}[/tex] [here P =x , R = 6.5% and t = 2 yr]

=$ [tex]\frac{{13 x}}{{100} }[/tex]

Again he got interest from deposit was = [tex]\frac{PRt}{100}[/tex]

=$ [tex]\frac{(8000-x)\times 2.5\times\frac{18}{12} }{100}[/tex] [here P = (8000-x), R=2.5% and t =[tex]\frac{18}{12} yr[/tex]]

=$ [tex]\frac{(8000-x) \times 7.5}{200}[/tex]

According to problem

[tex]\frac{{13 x}}{{100} }+\frac{(8000-x) \times 7.5}{200}= 855[/tex]

⇔[tex]\frac{26x + 60000 - 7.5}{200} =855[/tex]

⇔18.5 x =171000 - 60000

⇔x = [tex]\frac{11100}{18.5}[/tex]

⇔x = 6000

So he invested in stock fund was = $6000

and in certificate of deposit was =$(8000- 6000)= $ 2000