Problema Solution
$2000 is invested in certificates of deposit. Some of the $2000 is placed in a 4% simple interest certificate of deposit and the rest in a 5% simple interest certificate of deposit. If at the end of the year, $88 was the total of the interest earned, how much was invested in the 5% certificate?
Answer provided by our tutors
Let
x = money invested at 5% simple interest
2000 - x = money invested at 4% simple interest
0.05x + 0.04(2000 - x) = 88
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click here to see the equation solved for x
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x = $800
$800 was invested in the 5% certificate.