SOLUTION: Brenda deposited some money at 6% simple interest in a certificate of deposit. She invested $1500 less than this amount in a mutual fund account bearing simple interest at 11%. If
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: Brenda deposited some money at 6% simple interest in a certificate of deposit. She invested $1500 less than this amount in a mutual fund account bearing simple interest at 11%. If
Log On
Question 1169223: Brenda deposited some money at 6% simple interest in a certificate of deposit. She invested $1500 less than this amount in a mutual fund account bearing simple interest at 11%. If Brenda's total interest income was $1195 for the year, how much did she invest in each account? Answer by ikleyn(52776) (Show Source):
x invested at 11%
x+1500 invested at 6%
The total interest equation
0.11x + 0.06*(x+1500) = 1195.
From the equation
x = = 6500.
ANSWER. $6500 invested at 11%, and $6500 + $1500 = $8000 invested at 6%.
CHECK. 0.11*6500 + 0.06*8000 = 1195 dolllars. ! Precisely correct !
Solved.
----------------
It is a standard and typical problem on investments.
You will find there different approaches (using one equation or a system of two equations in two unknowns), as well as
different methods of solution to the equations (Substitution, Elimination).
