Problema Solution
Ms. Adams received a bonus check for $15,000. She decided to divide the money among three different investments. With some of the money, she purchased a municipal bond paying 5.4% simple interest. She invested twice the amount she paid for the municipal bond in a certificate of deposit paying 4.7% simple interest. Ms. Adams placed the balance of the money in a money market account paying 3.4% simple interest. If Ms. Adams' total interest for one year was $625, how much was placed in each account?
Answer provided by our tutors
let
x = the money invested on a municipal bond paying 5.4% simple interest
2x = the money invested on a certificate of deposit paying 4.7% simple interest
15,000 - (x + 2x) = the money invested in a money market account paying 3.4% simple interest
0.054x + 0.047*2x + 0.034(15000 - (x + 2x)) = 625
by solving we find
x = $2,500
click here to see the step by step solution of the equation
2x = 2*$2,500 = $5,000
15,000 - (x + 2x) = 15,000 - (2,500 + 5,000) = 15,000 - 7,500 = $7500
$2,500 were invested on a municipal bond paying 5.4% simple interest.
$5,000 were invested on a certificate of deposit paying 4.7% simple interest.
$7,500 were invested in a money market account paying 3.4% simple interest.