Problema Solution
A mother wants to invest $6,000 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 2% simple interest and the remainder in a savings bond that earns 6% simple interest. If the total interest earned after one year is $300, how much money was invested in each account?
Answer provided by our tutors
Let
x = the money invested in a bank certificate of deposit (CD account)
y = the money invested in saving bonds
The total money invested is $6,000 means:
x + y = 6000
The total interest earned after one year is $300 means:
0.02x + 0.06y = 300
by solving the system of equations
x + y = 6000
0.02x + 0.06y = 300
we find
x = $1,500
y = $4,500
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$1,500 were invested in the CD account.
$4,500 were invested in saving bonds.