SOLUTION:
A mother wants to invest $9,000 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% simpl
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A mother wants to invest $9,000 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% simpl
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Question 1167134:
A mother wants to invest $9,000 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% simple interest and the remainder in a savings bond that earns 5% simple interest. If the total interest earned after one year is $ 405,how much money was invested in each account?
The amount of money that was invested in the CD account is?
The amount of money that was invested in the savings bond is?
Algebraically, 4% of amount x, plus 5% of amount (9000-x), is 405:
Solve using basic algebra.
A quick non-algebraic path to the answer is to calculate that $405 interest on $9000 is 4.5%; since that is exactly halfway between 4% and 5%, the money must have been invested half at each rate.
