SOLUTION: A mother wants to invest ​$9,000 for her​ son's future education. She invests a portion of the money in a bank certificate of deposit​ (CD account) which earns 4​% simpl

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Question 1167134:
A mother wants to invest ​$9,000 for her​ son's future education. She invests a portion of the money in a bank certificate of deposit​ (CD account) which earns 4​% simple interest and the remainder in a savings bond that earns 5​% simple interest. If the total interest earned after one year is $ 405​,how much money was invested in each​ account?
The amount of money that was invested in the CD account is?
The amount of money that was invested in the savings bond is?

Answer by greenestamps(13200)   (Show Source): You can put this solution on YOUR website!


Algebraically, 4% of amount x, plus 5% of amount (9000-x), is 405:



Solve using basic algebra.

A quick non-algebraic path to the answer is to calculate that $405 interest on $9000 is 4.5%; since that is exactly halfway between 4% and 5%, the money must have been invested half at each rate.

ANSWER: $4500 at each rate

CHECK: .04(4500)+.05(4500) = 180+225 = 405


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