Problema Solution
raji invested part of his $20,000 inheritance in a mutal fund account pays 7% simple interest yearly and in a certificate of deposit that pays 9% simple interest yearly. at the end of one year, raji's investments earned $1550. find the amount invested at each rate.
Answer provided by our tutors
Let
x = the money invested at 7% simple interest
y = the money invested at 9% simple interest
Raji invested part of his $20,000 inheritance:
x + y = 20,000
At the end of one year, Raji's investments earned $1550:
0.07x + 0.09y = 1,550
We have the following system of equations:
x + y = 20000
0.07x + 0.09y = 1550
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x = $12,500
y = $7,500
Raji invested $12,500 in a mutal fund account pays 7% simple interest yearly and $7,500 in a certificate of deposit that pays 9% simple interest yearly.