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Sally has $8,900 invested in two accounts. for the year, she earns $182 more in interest from her 6% mutual fund account than she does from her 2% cd. how much does she have in each account?

User Meetu
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Final answer:

To determine how much Sally has in each of her two accounts, we set up a system of equations using the total investment amount and the difference in interest earned. Solving this system, we find that Sally has $3,400 in the 6% mutual fund and $5,500 in the 2% CD account.

Step-by-step explanation:

To solve the mathematical problem completely where Sally has $8,900 invested in two accounts, with one account being a 6% mutual fund and the other a 2% CD (Certificate of Deposit), we can set up a system of equations to determine how much she has in each account.

Let x represent the amount of money in the 6% mutual fund, and y represent the amount in the 2% CD. The total amount of money invested is $8,900, so we have our first equation:

x + y = 8,900

According to the problem, Sally earns $182 more in interest from the mutual fund than she does from the CD. Since interest is a percentage of the principal (the amount invested), we can express the interest earned from each account:

Interest from the mutual fund is 0.06x and from the CD is 0.02y. The mutual fund earns $182 more than the CD, leading to our second equation:

0.06x = 0.02y + 182

Now we have a system of equations:

  1. x + y = 8,900
  2. 0.06x = 0.02y + 182

We will solve the second equation for x:

x = (0.02y + 182) / 0.06

Substitute the expression for x into the first equation:

((0.02y + 182) / 0.06) + y = 8,900

After solving for y, we find that y = $5,500. Then we can find x by subtracting y from the total amount invested:

x = 8,900 - 5,500 = $3,400

Therefore, Sally has $3,400 in the 6% mutual fund and $5,500 in the 2% CD.

User Yedy
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