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28 January, 17:51

A mother wants to invest $9 comma 000.00 for her son's future 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 $ 540.00 comma how much money was invested in the CD account?

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  1. 28 January, 20:29
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    how much money was invested in the CD account?

    $3000

    Explanation:

    I=C*%I*T

    I=C1*0,04*1+C2*0,7*1

    9000=C1+C2

    C1=9000-C2

    540 = (9000-C2) * 0,04+C2*0,07

    540=360-0,04C2+O, 07C2

    180=0,03C2

    C2=6000

    C1=3000

    I=3000*0,04 = 120

    I=6000*0,07=420
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