A mother wants to invest $10000 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 $ 600, how much money was invested at each rate?
2 answers
how much money was invested at each rate?
If x was invested at 4%, then the rest (1000-x) was at 7%
So, now just add up the interest
.04x + .07(10000-x) = 600
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So, now just add up the interest
.04x + .07(10000-x) = 600
...
1 answer