Problema Solution
solve a mother earned 17500.00 from royalties on her cookbook. she set aside 20% of this for a down payment on a new home. the balance will be used for her sons future education. she invests a portion of the money in a bank certificate of deposit that earns 4%and the remainder in a savings bond that earns 7%. if the total interest earned after 1 year is 840.00 how much money was invested at each rate?
Answer provided by our tutors
let
x = the money invested at 4%
y = the money invested at 7%
x + y = 0.80*17500
0.04*x + 0.07y = 840
by solving we find:
x = $4,666.67
y = $9,333.33
click here to see the step by step solution of the system of equations:
$4,666.67 was invested at 4% and $9,333.33 at 7%.