SOLUTION: Jerome had $18,000 to invest. He put some of the money in an account earning 3% simple interest, and the rest in a CD earning 8% simple interest. At the end of the year he had $119

Question 1122749: Jerome had $18,000 to invest. He put some of the money in an account earning 3% simple interest, and the rest in a CD earning 8% simple interest. At the end of the year he had $1190 in total interest, how much did he invest at each rate?
Answer by ikleyn(52847) (Show Source): You can put this solution on YOUR website!
.


Let x = amount at 8%, in dollars.

Then the amount at 3% is the rest (18000-x) dollars.



The interest from the 8% amount is 0.08*x  dollars.

The interest from the 3%   amount is 0.03*(18000-x)   dollars.



Your equation is


    interest + interest       = total interest,   or

    0.08*x   + 0.03*(18000-x) = 1190   dollars.


    x =  = 13000.


Answer.  The amount at 8% is $13000;  the rest  $18000-$13000 = $5000 is the amount at 3%.


Check.   0.03*5000 + 0.08*13000 = 11900 dollars.   ! Correct !

-----------------

It is a typical and standard problem on investment.

To see many other similar solved problems on investment, look into the lesson
- Using systems of equations to solve problems on investment
in this site.

You will find there different approaches (using one equation or a system of two equations in two unknowns), as well as
different methods of solution to the equations (Substitution, Elimination).

Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lesson is the part of this online textbook under the topic "Systems of two linear equations in two unknowns".

Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.

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