Question

Melanie invests a total of $20,500 in two accounts (a bond and a certificate of deposit) paying 14% and 6%

simple interest, respectively. How much was invested in each account if, after one year, the total interest
was $2,670.00.

Answer 1

Explanation:

0.14x + 0.06(20,500 - x) = 2,670.00

0.14x + 1,230 - 0.06x = 2,670.00

0.08x + 1,230 = 2,670.00

0.08x = 2,670.00 - 1,230

0.08x = 1,440.00

x = 1,440.00 / 0.08

x = 18,000.00

invested $18,000.00 in the bond account and $2,500.00 (20,500 - 18,000) in the certificate of deposit account.