Susan invested $6000 at 4% and $12000 at 8% to gain a total interest of $1200 in a period of 1 year
Simple Interest is calculated by multiplying the principal amount by the rate of interest and the time in years for which it is invested divided by 100.
Let her principal for 4% be x then for 8% it is 2x.
Time is 1 year
Hence,
Interest for 4% = x*4*1/100
= 0.04x
Interest for 8% = 2x*8*1/100
= 0.16x
Interest for 4% + Interest for 8% = 1200
0.20x = 1200
x = $6000
The amount invested at 4% is $6000 and the amount invested at 8% is $12000
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