Since the total amount Pep invested was $500, and since the amount invested in the savings account is x, then the amount invested in the CD is 500 – x

Since he earned 4% on his savings account investment of x, he then earned .04(x)

Also, since he earned 6% on his CD account investment of (500 – x), he then earned .06(500 - x)

So, total earned is:		.04x  +  .06(500 - x)  =  26

				.04x   +   .30  -  .06x  =  26

				- .02x    =   - 4
				
				        x   =   200
Therefore, Pep invested $200, at 4% in his savings account, and $300, at 6% in his CD account.