SOLUTION: A person wishes to deposit a total of $10.000 in two accounts. The savings account pays yearly interest of 4% and fixed certificates of deposit pay a yearly interest rate of 7%. Ho

Question 1058542: A person wishes to deposit a total of $10.000 in two accounts. The savings account pays yearly interest of 4% and fixed certificates of deposit pay a yearly interest rate of 7%. How much should the person deposit in each account so that he gets a total of $502 interest at the end of the year?
Answer by solve_for_x(190) (Show Source): You can put this solution on YOUR website!
Let x represent the amount deposited in the savings account, and let y represent the
amount deposited in the CD.

Since the total investment is $10,000, you can write:

x + y = 10000

The total interest earned is:

0.04x + 0.07y = 502

Solving the first equation for y gives:

y = 10000 - x

Substituting 10000 - x in place of y in the second equation gives:

0.04x + 0.07(10000 - x) = 502

0.04x + 700 - 0.07x = 502

-0.03x + 700 = 502

-0.03x = 502 - 700

-0.03x = -198

x = -198 / -0.03

x = 6600

Then y = 10000 - 6600 = 3400

Solution: $6600 should be invested in the savings account, and $3400 should be
invested in the certificates of deposit.

Check:
x + y = 6600 + 3400 = 10000

0.04x + 0.07y = 0.04(6600) + 0.07(3400) = 264 + 238 = 502

RELATED QUESTIONS
An algebra student has won $500,000 in a lottery and wishes to deposit it in savings... (answered by colliefan)

Linda Smaoke invests a total of $10,000 in two savings accounts. One account pays 6%... (answered by Msexcel ,ikleyn,greenestamps)

A teenager has $10,000 invested in a checking account paying 2.5% per year and a savings (answered by math_helper)

Mary Poppins invests a total of $13,500 in two savings accounts. One pays 2% annual... (answered by jojo14344)

A man has a savings account that pays 1% annual interest and a mutual fund account that... (answered by tutorcecilia,josmiceli)

You split $2000 between two savings accounts. Account A pays 2% annual interest and... (answered by addingup)

You want to have $3000 in your savings account after 3 years. Find the amount you should (answered by rfer)

A person deposited $500 in a savings account that pays 5% annual interest that is... (answered by Fombitz)

A person deposited $500 in a savings account that pays 5% annual interest that is... (answered by mananth)