SOLUTION: Two certificates of deposits (CDs) pay interest at rates that differ by 4%. Money invested for 1 year in the first CD earns $50 interest. The same amount invested in the second CD
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Question 926636: Two certificates of deposits (CDs) pay interest at rates that differ by 4%. Money invested for 1 year in the first CD earns $50 interest. The same amount invested in the second CD earns $90. Find the two rates of interest. Thank you so much for whoever takes the time to help me. Answer by josmiceli(19441) (Show Source):
You can put this solution on YOUR website! They don't say that it's compound interest, so
it must be a simple interest problem
Let = the rate for the 1st CD
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The 2nd CD earns $40 more, so it must be
a higher rate, so it is:
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Let = amount invested at each rate
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Equation for1st rate:
(1)
Equation for 2nd rate:
(2)
-------------------------
(1)
and
(2)
-------------------------
I can say:
and
The rates are 5% and 9%
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check:
(1)
(1)
(1)
and
(2)
(2)
(2)
(2)
OK
