Problema Solution

Last year, Norma Reddy had $10,000.00 to invest. She invested some of it in a savings account which paid 3% simple interest, and she invested the rest in a certificate of deposit which paid 5% simple interest. In one year, she earned a total of $380.00 in interest. How much did Norma invest in each account?

Answer provided by our tutors

LET X BE THE FUND @3%

Y BE THE FUND @4%

X*3%+Y*5%=380

AND X+Y=10000

(10000-Y).03+.05Y=380

300+.02Y=380

Y=4000

X=6000