SOLUTION: A mother wants to invest​ $10,000.00 for her​ son's future education. She invests a portion of the money in a bank certificate of deposit​ (CD account) which earn
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Question 1127785: A mother wants to invest $10,000.00 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $600.00, how much money was invested in the CD account?
Answer by greenestamps(13203) (Show Source): You can put this solution on YOUR website!
The $600 interest is a return of 6% on the $10,000 that was invested.
6% is two-thirds of the way from 4% to 7%; that means 2/3 of the money was invested at the higher rate.
The question asks for the amount invested in the CD account, which is the lower rate; 1/3 of the money was invested there.
ANSWER: 1/3 of the $10,000, or $3,333.33, was invested in the CD account.
For a traditional algebraic solution (which will require much more work and take much longer, solve the equation that says amount x invested at 4%, plus (10000-x) invested at 7%, yields $600 interest:
You can finish the slow algebraic solution.
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