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31 May, 05:12

Last year Anne invested a total of $6,400. She invested part of it in a certificate of deposit that earned 2% interest for the year. The rest of the investment was put into bonds that earned 6% interest for the year. Anne earned 3.75% in interest overall. How much money did Anne put into each type of investment?

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  1. 31 May, 05:39
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    Suppose Anne invested $x in certificate of deposit and $ (6400-x) in bonds.

    Interest rate earned in certificate deposit will be:

    2/100*x=0.02x

    Interest earned in bonds will be:

    6/100 * (6400-x)

    = (364-0.06x)

    Total amount of interest earned was 3.75%, this is equal to:

    3.75/100*6400

    =240

    hence we conclude that:

    0.02x + (364-0.06x) = 240

    0.02x+364-0.06x=240

    0.02x-0.06x=240-364

    -0.04x=-124

    x=-124 / (-0.04)

    x=$3100

    hence the amount invested in certificate was $3100 and the amount invested in bonds was (6400-3100) = $3300
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