MBA-501-X5280 Math and Stats for Business 18TWS Test: 9-2 MyMathLab: Final Exam

Question

MBA-501-X5280 Math and Stats for Business 18TWS Test: 9-2 MyMathLab: Final Exam This Question: 13 pts 17 af 25 This Test 26 A mother wants to invest $12,000.00 for her son's future education She invests a portion of the money in a bank centateofde post CD account, anch S4%idhennarornasan dhut ini interest eamed after one year is $T20.00, how much money was invested in the CD acount The total interest earned after one year is $720.00 How much money was invested in the CD account? Round to the nearest cent, if necessary) Enter your answer in the answer box

Explanation / Answer

Let 'x' be the amount invested in CD account and the rest of $12000 - x invested in savings account.
Total interest earned = $ 720
Interest earned on CD account with interest rate 4% = 0.04(x)
Interest earned on Savings account with interest rate 7% = 0.07(12000 - x)
Total interest earned = 0.04x + 0.07(12000-x) = 840 - 0.03x = 720
=> 0.03x = 120 => x = 4000
Amount invested in CD account = $ 4000

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