Final answer:
By setting up an equation for total interest earned and solving for the interest rate of the CD, we find that the CD's interest rate is 9% and the money market account's interest rate is 8%. The correct answer is c. CD: 9%, Money Market: 8%.
Step-by-step explanation:
To determine the rate of interest on each account (the CD and the money market account), we can set up an equation based on the given information. The total interest earned is $804, and we know the investment amounts and the relationship between the annual percentage yields (APYs) of the two accounts.
Let's use r to represent the interest rate of the CD, in decimal form, so the money market account's interest rate would be r - 0.01 (1% less than the CD's rate). Setting up the equation using the formula for simple interest (Interest = Principal x Rate x Time), we have:
Interest from CD + Interest from Money Market = Total Interest
(8400 * r) + (9600 * (r - 0.01)) = 804
Solving for r, we find that the CD's interest rate is 9%, and therefore, the money market account's interest rate is 8%.
The correct answer is c. CD: 9%, Money Market: 8%.