A mother wants to invest $15,000.00 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 $900.00, how much money was invested in the CD account?
The total interest earned after one year is $900.00.
How much money was invested in the CD account? $
(Round to the nearest cent, if necessary.)

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Azikennamdigo Azikennamdigo · Answer 1

From the analysis of the above math, the amount she invested in the CD account is 5,000. See the analysis below.

Let A be the amount invested in the CD.

Let B be the amount invested in the savings bond.

A + B = 15, 000

.04A + .07B = 900

Multiply the first equation by -.04 and add it to the second equation to get rid of the A term.

-.04A-.04B = -600 add this equation to the second equation.

.03B = 300 multiplying by 100. 3B = 30,000

dividing by 3 on both sides: B = 10,000. So A = 5,000

So she invested 5,000 in the CD account

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