Question 1136652: Mark wants to invest $10,000 to pay for his daughter's wedding next year. He will invest some of the money in a short term CD that pays 12% interest and the rest in a money market savings account that pays 5% interest. How much should he invest at each rate if he wants to earn $1,004 in interest in one year?
Answer by ikleyn(52754)   (Show Source):
You can put this solution on YOUR website! .
Let x be the amount invested at 12%.
Then the amount invested at 5% is the rest (10000-x) dollars.
Your equation is THIS
interest + interest = total interest, or
0.12x + 0.05*(10000-x) = 1004 dollars.
From the equation,
x =  = one click in my MS Excel = 7200 dollars.
Answer. $7200 invested at 12% and the rest, (10000-7200) = 2800 dollars invested at 5%.
CHECK. 0.12*7200 + 0.05*2800 = 1004 dollars. ! Correct !
Solved.
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It is a standard and typical problem on investments.
If you need more details, or if you want to see other similar problems solved by different methods, look into the lesson
- Using systems of equations to solve problems on investment
in this site.
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).
Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.
The referred lesson is the part of this online textbook under the topic "Systems of two linear equations in two unknowns".
Save the link to this online textbook together with its description
Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson
to your archive and use it when it is needed.
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