Question

mark wants to invest $10,000 for his daughter’s wedding. Some will go into a short term CD that pays 12% and the rest in a money market savings account that pays 5% interest. How much should he invest at Each rate if he wants to earn $1095.00 in interest in one year.

Answer 1

Market saving is 1500
Certificate of deposit 8500

A = 10000 - B
0.12(10000 - B) + 0.05 = 1095

Then solve for B

1200 - 0.12B + 0.05B = 1095
1,200 - 1095 = 0.07B
105/0.07 = B
B = 1500

Market saving accounts 1500

Now Solve for CD
10000 - 1500 = 8500 Certificate of deposit