Certificate of Deposit

Archive for December, 2007

Question: please help me out.thanks?

1)Shirley invested a total of $12,000 in two certificates of deposit. One pays 6% interest, and the other pays 7% interest. Her total interest at the end of one year is $790. How much is invested in the CD that pays 6% interest?

2)Thomas charged $2,400 on his credit card to buy furniture. The interest rate charged by the credit card company is 24.9%. After one month, the minimum payment on the debt is $50. How much will he owe after he makes the first payment?

3)Harry has $4000 invested in two savings accounts. One account earns 6% interest per year, and the other pays 7% per year. If his total interest for the year is $264, how much is invested at 7%?

Answer: 1]
Let x = amount invested at 6% interest
Let y = amount invested at 7% interest

x + y = $12,000
.06x + .07y = $790

Solve for x by substitution. Use the same setup for #3.

2] If the annual interest rate is 24.9%, the rate for one month is 24.9 / 12. After one month he owes $2,400 plus one month’s interest. Figure out how much that is, and subtract the $50 payment from it to find out how much he still owes.

Financial Advice : Finance: Certificates of Deposit