Question 221954
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*[tex \LARGE \ \ \ \ \ \ \ \ \ \ A = P(1+rt)]


will do you no good whatsoever in solving the problem you stated.



Let *[tex \Large x] represent the amount to be invested in CDs.  Then the amount to be invested in bonds is *[tex \Large x + 3000].  Together these amounts add up to $20K, so:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ x + (x + 3000) = 20000]


Solve for *[tex \Large x] to get the amount invested in CDs, add 3000 to get the amount invested in bonds.  THEN, if you know the bond and CD interest rates AND the term of the investment AND you assume that both the bonds and CDs will earn simple interest (not generally true), you can use the formula:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ A = P(1+rt)]


To calculate the Future Value of the investments.


John
*[tex \LARGE e^{i\pi} + 1 = 0]
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