Question

A mother earned ​$7500.00 from royalties on her cookbook. She set aside​ 20% of this for a down payment on a new home. The balance will be used for her​ son's future education. She invests a portion of the money in a bank certificate of deposit​ (CD account) that earns​ 4% and the remainder in a savings bond that earns​ 7%. If the total interest earned after one year is ​$360.00​, how much money was invested at each​ rate?

Answer 1

The amount of money deposited in the CD = 2000$
The amount of money deposited in the saving account = 4000$

Hope this helps. :D

Answer 2

$2000 was invested in cd at 4% and $4000 was invested in bonds at 7%.

Explanation:

20% of 7500 =
`0.20*7500=1500` dollars

Balance remained =
`7500-1500=6000` dollars

Let she invests in cd = x

So, she will invest in bond =
`6000-x`

Now, the cd earns 4% and bond earns 7% and total interest earned is $360.

`0.04x+0.07(6000-x)=360`

=>
`0.04x+420-0.07x=360`

=>
`0.03x=60`

So, x = 2000 (amount in cd)

And amount in bonds =
`6000-2000` = $4000.

Therefore, $2000 was invested in cd at 4% and $4000 was invested in bonds at 7%.