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A mother earned ​$17500.00 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 ​$840.00​, how much money was invested at each​ rate?

1 Answer

4 votes
17500/5 = 3500 ( down payment )
17500 - 3500 = 14000

14000/100 = 140
140 x 4 = 560 ( CD account )

14000 - 560 = 13440
13400/100 = 134.4
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