Problema Solution
Sam received 12,000 from an inheritance ans invest part in a certificate of deposit paying 3.5% annual interest and the rest in bonds offering an annual return of 5%. If the annual income from his invest is 570$,how much did samuel invest in each?
Answer provided by our tutors
let 'x' represent the amount invested at 3.5%, then '12000-x' represents the amount invested at 5%
simple interest = principal * rate * time
we take time to be equal to 1
570 = 0.035x + 0.05(12000-x)
solving for 'x' we have x=2000
12000-2000 = 10000
Sam invested $10,000 in bonds at 5% and $2,000 in the certificate of deposit at 3.5%