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A credit union offers 5.5% simple interest on a certificate of deposit and 3.5% simple interest on a savings account. If $200 more is invested in the certificate of deposit than in the savings account and the total interest after the first of the year was $245, how much was invested in each account?

User Chopper
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Answer:the amount of money invested on the certificate of deposit is $2800

the amount of money invested on the savings account is $2600

Explanation:

Let x represent the amount of money invested on the certificate of deposit.

Let y represent the amount of money invested on the savings account.

If $200 more is invested on the certificate of deposit than in the savings account, it means that

x = y + 200

The formula for simple interest is expressed as

I = PRT/100

Where

P represents the principal

R represents interest rate

T represents time

Considering the investment on the certificate of deposit,

P = x

R = 5.5

T = 1

I = (x × 5.5 × 1)/100 = 0.055x

Considering the investment on the savings account,

P = y

R = 3.5%

T = 1

I = (y × 3.5 × 1)/100 = 0.035y

If the total interest after the first of the year was $245, it means that

0.055x + 0.035y = 245 - - - - - -1

Substituting x = y + 200 into equation 1, it becomes

0.055(y + 200) + 0.035y = 245

0.055y + 11 + 0.035y = 245

0.09y = 245 - 11 = 234

y = 234/0.09 = $2600

Substituting y = 2600 into

x = y + 200, it becomes

x = 2600 + 200

x = $2800

User GCGM
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