SOLUTION: If Joe invests $21,000 dollars in cd's and $10,500 in bonds. the cd's intrest rate is 1% larger than the band rate, and the cd generates $840 more than the bond what are the two in

Algebra ->  Finance -> SOLUTION: If Joe invests $21,000 dollars in cd's and $10,500 in bonds. the cd's intrest rate is 1% larger than the band rate, and the cd generates $840 more than the bond what are the two in      Log On


   



Question 314340: If Joe invests $21,000 dollars in cd's and $10,500 in bonds. the cd's intrest rate is 1% larger than the band rate, and the cd generates $840 more than the bond what are the two intrst rates??????
Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
C=21000
B=10500
Rc=Rb%2B0.01
Ic=Ib%2B840
.
.
.
C%2ARc=Ic
21000%2ARc=Ic
.
.
10500%2ARb=Ib
Substitute,
Ic=Ib%2B840
21000%2A%28Rb%2B0.01%29=10500%2AIb%2B840
21000Rb%2B210=10500%2ARb%2B840
10500Rb=630
Rb=63%2F1050
Rb=0.06
Rc=Rb%2B0.01
Rc=0.07
The CD rate is 7% and the bond rate is 6%.