SOLUTION: Bob plans to invest a total of $7,000 in a CD which returns 2.55% interest and a mutual fund which from past average he hopes returns 8%. How much should be invested in each accoun
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Question 1051616: Bob plans to invest a total of $7,000 in a CD which returns 2.55% interest and a mutual fund which from past average he hopes returns 8%. How much should be invested in each account if the resulting annual interest earned from both accounts is $342? Answer by jorel555(1290) (Show Source):
You can put this solution on YOUR website! Let n be the amount invested at 8%. Then:
.08n+.0255(7000-n)=342
.0545n=163.5
n=3000
$3000 should be invested at 8%, and $4000 at 2.55%. ☺☺☺☺
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