SOLUTION: Orlando Salavarrio, a financial planner, recommended that 20% of a client's investment be placed in a 4% annual simple interest tax-free account, 50% be placed in 7% certificates o

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: Orlando Salavarrio, a financial planner, recommended that 20% of a client's investment be placed in a 4% annual simple interest tax-free account, 50% be placed in 7% certificates o      Log On


   

Question 1122575: Orlando Salavarrio, a financial planner, recommended that 20% of a client's investment be placed in a 4% annual simple interest tax-free account, 50% be placed in 7% certificates of deposit, and the remainder be placed in a 9% high-risk investment. The total interest earned from the investments would be $6300. Find the total amount to be invested.

Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


Let the amount invested be x.

The total interest earned, $6300, is
(1) 4% of the 20% of x: (.04)(.20)(x); plus
(2) 7% of the 50% of x: (.07)(.50)(x); plus
(3) 9% of the 30% of x: (.09)(.30)(x)

%28.04%29%28.20%29%28x%29%2B%28.07%29%28.50%29%28x%29%2B%28.09%29%28.30%29%28x%29+=+6300

The equation is easily solved to find the answer.