Problema Solution
To help pay for his child's college education, a father invests $10,000 in two separate investments: a certificate of deposit paying 12% and, the rest in a mutual fund paying 8%. The annual income of the certificate of deposit is $200 more than the annual income of the mutual fund. How much is invested in each type of investment?
Answer provided by our tutors
let
c = the money invested in a certificate of deposit paying 12%
m = the money invested in a mutual fund paying 8%
father invests $10,000 in two separate investments
c + m = 10000
the annual income of the certificate of deposit is $200 more than the annual income of the mutual fund
(12/100)*c = 200 + (8/100)m
0.12*c = 200 + 0.08m
by solving the system of equations
c + m = 10000
0.12*c = 200 + 0.08m
we find
c = $5,000
m = $5,000
click here to see the step by step solution of the system of equations
$5,000 are invested in a certificate of deposit paying 12%.
$5,000 are invested in a mutual fund paying 8%.