Problema Solution
A person invests $60,600 , some in bonds , and the rest in CDS . The Bonds earn 12% per year, and the CDs earn 8% per year. The total interest earned after 1 year is $6378 . How much money is invested in each plan
Answer provided by our tutors
let
b = the money invested in bonds
c = the money invested in CDS
A person invests $60,600
b + c = 60600
The Bonds earn 12% per year, and the CDs earn 8% per year. The total interest earned after 1 year is $6378
0.12*b + 0.08*c = 6378
by solving the system of equations
b + c = 60600
0.12*b + 0.08*c = 6378
we find
b = $38,250
c = $22,350
click here to see the step by step solution of the system of equations
$38,250 were invested in bonds.
$22,350 were invested in CDS.