Problema Solution
Two certificates of deposit (CDs) pay interest at rates that differ by 2%. Money invested for one year in the first CD earns $175 interest. The same principal invested in the second CD earns $200. Find the two rates of interest.
Answer provided by our tutors
The two rates are x, x+0.02
So the equation is
(x+ 0.02)/x = 200/175
x = 0.14
So
The two rates are 14%, 16%