Problema Solution
A mother wants to invest $11,000.00 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which ears 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $660.00, how much money was invested in the CD account? The total interest earned after one year is $660.00
Answer provided by our tutors
let
x = the money invested in a bank certificate of deposit (CD account)
y = the money invested in saving bonds
the total money invested is $11,000.00
x + y = 11000
the total interest earned after one year is $660.00
0.04x + 0.07y = 660
by solving the system of equations
x + y = 11000
0.04x + 0.07y = 660
we find
x = $3,666.67
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$3,666.67 were invested in the CD account.