Certificate of Deposit

Question: part2 investment prob.?

1) A deposit was made into a 7% annual simple interest account. Another deposit, $ 15,000 less that the first, was placed in a Certificate Of Deposit earning 9% annual simple interest. The total interest earned on both investments for one year was % 5,050. How much money was deposited in the Certificate Of Deposit?/

2) A corporation gave a university $ 300,000 to support product safety research . The university deposited part of it in a 10% simple interest account and the remainder in a 8.5% corporate bonds. How much is invested in each account if the annual interest is $ 28,500???
show your solution and the represent example A=x=4,000

Answer: Question 1
.07x + (x – 15,000) x .09 = $5050
.07x + .09x – 1350 = 5050
.16 x = 6400
x = $40,000
The second amount is therefore $40,000 – $15,000 = $25,000 (at 9%)
Question 2
.10 x + (300,000 – x) x .085 = $28,500
.10x + 25,500 – .085x = $28,500
.015x = $3000
x = $200,000
The second amount is therefore (300,000-200,000) or $100,000 (at 8.5%)

http://www.CaliforniaAnnuityFAQ.com – COMMENTARY: ‘Safe’ Investments – How Risky Are They?