SOLUTION: Jerome had $18,000 to invest. He put some of the money in an account earning 3% simple interest, and the rest in a CD earning 8% simple interest. At the end of the year he had $119
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Question 1122749: Jerome had $18,000 to invest. He put some of the money in an account earning 3% simple interest, and the rest in a CD earning 8% simple interest. At the end of the year he had $1190 in total interest, how much did he invest at each rate? Answer by ikleyn(52817) (Show Source):
Let x = amount at 8%, in dollars.
Then the amount at 3% is the rest (18000-x) dollars.
The interest from the 8% amount is 0.08*x dollars.
The interest from the 3% amount is 0.03*(18000-x) dollars.
Your equation is
interest + interest = total interest, or
0.08*x + 0.03*(18000-x) = 1190 dollars.
x = = 13000.
Answer. The amount at 8% is $13000; the rest $18000-$13000 = $5000 is the amount at 3%.
Check. 0.03*5000 + 0.08*13000 = 11900 dollars. ! Correct !
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It is a typical and standard problem on investment.
You will find there different approaches (using one equation or a system of two equations in two unknowns), as well as
different methods of solution to the equations (Substitution, Elimination).
