Question

I am not good at word problems this is a project so need extra help

Answer 1

M = $6,400

C = $3,600

CD interest = $180

Money market interest = $256

Here, we want to start by completing the chart

We proceed as follows;

Let us take it line by line

a) The rate for the CD account is 5%

Writing this as decimal is 5/100 = 0.05

b) The time for the CD account is 1 year

Next line;

a) Principal invested in money market is $M

b) The time is also 1 year

Next line;

The interest earned on investment is the sum of both

That will be;

0.05c + 0.04m

So, let us write the equations to solve simultaneously;

`\begin{gathered} c\text{ + m = 10,000} \\ 0.05c\text{ + 0.04m = 436} \\ \text{second equation multiplied through by 100;} \\ 5c\text{ + 4m = 43,600} \\ \text{From i;} \\ c\text{ = 10,000-m} \\ \text{put this into the multiplied equation} \\ 5(10,000-m)\text{ + 4m = 43600} \\ 50,000\text{ - 5m + 4m = 43600} \\ m\text{ = 50,000-43600} \\ m\text{ = 6400} \\ c\text{ = 10,000-6400} \\ c\text{ = 3,600} \end{gathered}`

So, let us fill the last parts;

a) $3,600 + $6,400 = Total $10,000 invested

b) CD interest is 0.05 c = 0.05 (3,600) = $180

Money market interest = 0.04M = 0.04 (6,400) =$256

$180 + $256 = $436 total interest