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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Business

Tobie

30 March, 16:42

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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Juan Esparza · Answer 1

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