SOLUTION: Mrs. Powell has $800 invested in stocks and $500 invested in a Certificate of Deposit. The CD has an interest rate two times greater than the stocks. If her annual interest on thes

Algebra ->  Coordinate Systems and Linear Equations  -> Lessons -> SOLUTION: Mrs. Powell has $800 invested in stocks and $500 invested in a Certificate of Deposit. The CD has an interest rate two times greater than the stocks. If her annual interest on thes      Log On


   

Question 1080007: Mrs. Powell has $800 invested in stocks and $500 invested in a Certificate of Deposit. The CD has an interest rate two times greater than the stocks. If her annual interest on these two investments is $45, at what rate of interest is the $500 invested?
Answer by jorel1380(3719) About Me  (Show Source):
You can put this solution on YOUR website!
Let n and 2n be the interest rates of the stocks and the CD, respectively. Then:
800n+500(2n)=45
1800n=45
n=45/1800 or .025, which is 2.5%. Therefore, the CD rate is 5%. ☺☺☺☺