Question 1015323: Ashley has $ 120,000 to invest and decides to put some in a CD that earns 2 % interest per year and the rest in a low-risk stock that earns 1 %. How much did she invest in each to earn $1800 interest in the first year?
Answer by FrankM(1040)   (Show Source):
You can put this solution on YOUR website! If she invest all at 1%, she'd have $1200 interest.
If she invest all at 2%, she'd have $2400 interest.
$1800 is right in the middle, i.e. she saw a return of 1.5% so $60,000 at 1% and $60,000 at 2%.
Equations -
She invested $X at 1%, and (120000-x) at 2%
.01X + .02(120000)-.02X = 1800
-.01X + 2400 =1800
-.01X = -600
X = 60000 and 120000-60000=60000 as well, so $60000 at 1%, and $60000 at 2%
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