Question 195540: Pep invested x dollars in a savings account and y dollars in a certificate of deposit, for a totly investment of $500.
After 1 yr. he received 4% interest on the money in his savings account and 6% savings on the certificate of deposit for a totaly interest earned of $26.
Find out how much he invested at each rate.
Answer by MathTherapy(10552)   (Show Source):
You can put this solution on YOUR website!
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.
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