SOLUTION: A person wishes to deposit a total of $10.000 in two accounts. The savings account pays yearly interest of 4% and fixed certificates of deposit pay a yearly interest rate of 7%. Ho

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Question 1058542: A person wishes to deposit a total of $10.000 in two accounts. The savings account pays yearly interest of 4% and fixed certificates of deposit pay a yearly interest rate of 7%. How much should the person deposit in each account so that he gets a total of $502 interest at the end of the year?
Answer by solve_for_x(190) (Show Source):
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Let x represent the amount deposited in the savings account, and let y represent the
amount deposited in the CD.

Since the total investment is $10,000, you can write:

x + y = 10000

The total interest earned is:

0.04x + 0.07y = 502

Solving the first equation for y gives:

y = 10000 - x

Substituting 10000 - x in place of y in the second equation gives:

0.04x + 0.07(10000 - x) = 502

0.04x + 700 - 0.07x = 502

-0.03x + 700 = 502

-0.03x = 502 - 700

-0.03x = -198

x = -198 / -0.03

x = 6600

Then y = 10000 - 6600 = 3400

Solution: $6600 should be invested in the savings account, and $3400 should be
invested in the certificates of deposit.

Check:
x + y = 6600 + 3400 = 10000

0.04x + 0.07y = 0.04(6600) + 0.07(3400) = 264 + 238 = 502