Problema Solution
A woman has $29,000. Part is invested for one year in a certificate of deposit paying 7% interest, and the remaining amount in a cash management fund paying 9%. After 1 year, the total interest on the two investments is $2,270. How much is invested at each rate?
Answer provided by our tutors
let
x = money invested in certificate of deposit paying 7% interest
y = money invested in cash management fund paying 9% interest
the total money invested is $29,000
x + y = 29000
the total interest after 1 year on the two investments is $2,270
0.07*x + 0.09*y = 2270
by solving the system of equations
x + y = 29000
0.07*x + 0.09*y = 2270
we find
x = $17,000
y = $12,000
$17,000 is invested at 7% and $12,000 is invested at 9%.