document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=718466>Question 718466</A>: <I><SPAN STYLE=\"word-break: break-all;\"> a designer invest $20,000.0 in two CDs. the first CD pays 11% per annum simple interest, and the second pays 12.5%. at the end of on year she has earned 2320.0 in interest. \r<BR>\n" );
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document.write( "* how much did she invest in each CD?\r<BR>\n" );
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document.write( "* what was the effective interest rate on the total investments? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #440911 by </B><A HREF=/tutors/aboutme.mpl?userid=mananth><B>mananth(16946)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=mananth><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=mananth><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=440911\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> CD I	11.00%		per annum	-------------	Amount invested =x	<BR>\n" );
document.write( "CD II	12.50%		per annum	------------	Amount invested = y	<BR>\n" );
document.write( "	20000					<BR>\n" );
document.write( "Interest-----	2320					<BR>\n" );
document.write( "						<BR>\n" );
document.write( "CD I	11.00%		per annum	---x		<BR>\n" );
document.write( "CD II	12.50%		per annum	---y		<BR>\n" );
document.write( "Total investment						<BR>\n" );
document.write( "x	+	1	y=	20000	-------------1	<BR>\n" );
document.write( "Interest on both investments						<BR>\n" );
document.write( "11.00%	x	+	12.50%	y=	2320	<BR>\n" );
document.write( "Multiply by		100				<BR>\n" );
document.write( "11	x	+	12.5	y=	232000.00	--------2<BR>\n" );
document.write( "Multiply (1) by			-11			<BR>\n" );
document.write( "we get						<BR>\n" );
document.write( "-11	x	-11	y=	-220000.00		<BR>\n" );
document.write( "Add this to (2)						<BR>\n" );
document.write( "0	x	1.5	y=	12000		<BR>\n" );
document.write( "divide by		1.5				<BR>\n" );
document.write( "			y	=	8000	<BR>\n" );
document.write( "CD I	11.00%	$	12000			<BR>\n" );
document.write( "CD II	12.50%	$	8000			<BR>\n" );
document.write( "						<BR>\n" );
document.write( "CHECK						<BR>\n" );
document.write( "12000	---------	11.00%	-------	1320.00		<BR>\n" );
document.write( "8000	-------------	12.50%	-------	1000.00		<BR>\n" );
document.write( "Total			--------------------	2320.00		\r<BR>\n" );
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document.write( "20000----------2320<BR>\n" );
document.write( "100----------?\r<BR>\n" );
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document.write( "100/20000 * 2320<BR>\n" );
document.write( "		<BR>\n" );
document.write( "11.6%				<BR>\n" );
document.write( "m.ananth@hotmail.ca						<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );