SOLUTION: An investor puts $3000 in 2 CDs, one of which earns 5% annually and the other earns 4% annually. After 2 years he has earned $260. How much has he invested in each CD?
Can anyo
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Can anyo
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Question 56088: An investor puts $3000 in 2 CDs, one of which earns 5% annually and the other earns 4% annually. After 2 years he has earned $260. How much has he invested in each CD?
Can anyone solve this for me? I am a total math loser!!
Thanks so much. Found 2 solutions by tutorcecilia, funmath:Answer by tutorcecilia(2152) (Show Source):
You can put this solution on YOUR website! After 2 years he has earned $260.
Since the amount earned is $260 for two years, divide by 2 to get the amount earned in one year:
260/2=$130 interest earned in one year
.
So,
x invested at 4% plus($3000-x)invested at 5%=$130 interest earned in one year.
.04x+.05(3000-x)=130
.04x+150-.05=130
.04x-.05x=130-150
-.01x=-20
x=$2000
.
The CD at 4% earned = (.04)(2000)=$80 per year or $160 per two years
The CD at 5% earned=(.05)($3000-$2000)=$50 per year or 100 per two years.
You can put this solution on YOUR website! You are not a total math loser or you wouldn't have gotten this far. Let's be positive:
:
An investor puts $3000 in 2 CDs, one of which earns 5% annually and the other earns 4% annually. After 2 years he has earned $260. How much has he invested in each CD?
:
Let the amount invested at 5% be:x
Then the rest of the $3000 is invested at 4%: 3000-x
:
The interest formula is , I=interest, P=principal, r=rate, t=time
.05(x)(2)+.04(3000-x)(2)=260
.10x+.08(3000-x)=260
.10x+240-.08x=260
.02x+240=260
.02x=260-240
.02x=20
.02x/.02=20/.02
x=1000
The amount invested at 5%:x=$1000
The amount invested at 4%:3000-x=3000-1000=$2000
:
Happy Calculating!!!
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