SOLUTION: Bob received $14,000 inheritance and divided it between a mutual fund that yielded a yearly return of 5% and a 1-year CD that paid 3.5% annually. If his total earnings for the yea

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: Bob received $14,000 inheritance and divided it between a mutual fund that yielded a yearly return of 5% and a 1-year CD that paid 3.5% annually. If his total earnings for the yea      Log On


   

Question 321836: Bob received $14,000 inheritance and divided it between a mutual fund that yielded a yearly return of 5% and a 1-year CD that paid 3.5% annually. If his total earnings for the year on this investment was $640, how much did he invest in each of these two funds?
Answer by ankor@dixie-net.com(22740) About Me  (Show Source):
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Bob received $14,000 inheritance and divided it between a mutual fund that
yielded a yearly return of 5% and a 1-year CD that paid 3.5% annually.
If his total earnings for the year on this investment was $640, how much did
he invest in each of these two funds?
:
Let x = amt invested at 5%
The total was given as 14000, therefore
(14000-x) = amt invested at 3.5%
:
Write a total interest equation in decimal form
.05x + .035(14000-x) = 640
:
.05x + 490 - .035x = 640
:
.05x - .035x = 640 - 490
:
.015x = 150
x = 150%2F.015
x = $10,000 amt invested at 5%
:
I'll let you find out the amt invested a 3.5%
:
Check solution by finding the total interest using the two values