SOLUTION: can you please help me solve this word problem: A mother wants to invest $7,000.00 for her son's future education. she invests a portion of the money in a bank certificate of depo

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: can you please help me solve this word problem: A mother wants to invest $7,000.00 for her son's future education. she invests a portion of the money in a bank certificate of depo      Log On


   

Question 882523: can you please help me solve this word problem:
A mother wants to invest $7,000.00 for her son's future education. she invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $420.00, how much money was invested in the CD account?
Answer by MathTherapy(10552) About Me  (Show Source):
You can put this solution on YOUR website!
can you please help me solve this word problem:
A mother wants to invest $7,000.00 for her son's future education. she invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $420.00, how much money was invested in the CD account?


Let amount invested in CD account be F

Then amount invested in bond = 7,000 – F

Interest earned on CD, plus interest earned on bond, equals total interest earned, OR

.04(F) + .07(7,000 – F) = 420

.04F + 490 - .07F = 420

.04F - .07F = 420 – 490 

- .03F = - 70

F, or amount invested in the “4% CD” = %28-+70%29%2F-+.03, or $highlight_green%28highlight_green%282333.33%29%29

You can do a check!! 



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