A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 4 years ago
A mother wants to invest $6000 for her children's education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $360, how much money was invested at each rate?
anonymous
 4 years ago
A mother wants to invest $6000 for her children's education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $360, how much money was invested at each rate?

This Question is Closed

anonymous
 4 years ago
Best ResponseYou've already chosen the best response.0Let X equal the amount of money invested in the CD. As the question states that the remainder of the $6,000 will be invested in the savings bond, you can define the amount invested in the savings bond as 6,000 – X. Once you have the terms defined in this way, you can then create an easy equation to solve for X. The interest after 1 year ($360) will be equal to the amount of money in the CD (X) multiplied by the interest rate on the CD (4%) plus the amount of money in the savings bond (6,000 – X) multiplied by the interest rate on the savings bond (7%). The equation will look like this: (X)(0.04) + (6,000  X)(0.07) = 360 From here, collect like terms on the left side and then isolate X. 0.04X + 420 – 0.07X = 360 0.03X = 60 X = 60 / 0.03 X = 2,000 Therefore, the amount invested in the CD was $2,000 and the amount invested in the savings bond was the remaining $4,000. To double check if this is correct, you can multiply these amounts by the corresponding interest rate and it should add up to the total interest earned. 2,000 x 0.04 = 80 4,000 x 0.07 = 280 280 + 80 = 360 Hope this helps!
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.