SOLUTION: $2000 is invested in certificates of deposit. Some of the $2000 is placed in a 4% simple interest certificate of deposit and the rest in a 5% simple interest certificate of deposit
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Question 1008669: $2000 is invested in certificates of deposit. Some of the $2000 is placed in a 4% simple interest certificate of deposit and the rest in a 5% simple interest certificate of deposit. If at the end of the year, $88 was the total of the interest earned, how much was invested in the 5% certificate? Answer by fractalier(6550) (Show Source):
You can put this solution on YOUR website! Call the amount at 4%, x.
Then the amount at 5% is 2000-x.
The set up is like this
.04x + .05(2000-x) = 88
.04x + 100 - .05x = 88
-.01x = -12
x = $1200 at 4% so that
2000-x = $800 at 5%
