27) Lili invests $12000 in two one-year certificates ofdeposit. one certificate

Question

27) Lili invests $12000 in two one-year certificates ofdeposit. one certificate pays 4% and the other pays 4 1/2 % simpleinterest annually. a) Construct a model for the total interest Lilli earns in oneyear on her investments. 9 let x represent the amount invested at4%) b) If Lili's total interest is $526 how much money did sheinvest in each certificate. 27) Lili invests $12000 in two one-year certificates ofdeposit. one certificate pays 4% and the other pays 4 1/2 % simpleinterest annually. a) Construct a model for the total interest Lilli earns in oneyear on her investments. 9 let x represent the amount invested at4%) b) If Lili's total interest is $526 how much money did sheinvest in each certificate.

Explanation / Answer

To compute the interest for the first year, you just multiplythe principal (investment amount) time the interest which is expressed in decimal form, not %. So the interestthe first year will be this
x (0.04) + (12000 - x) ( 0.045 ) = int => ifthis = 526, we can say
0.04x -0.045x + 540 = 526 => 0.005 x =14 => x = $2800 and 12000 - 2800 =$9200

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