The amount deposited in CD is $660
<h3><u>Solution:</u></h3>Given that , To save for the purchase of a new car, a deposit was made into an account that earns 8% annual simple interest.
Let the amount deposited in new car be $ n
Another deposit, $1700 less than the first deposit, was placed in a certificate of deposit (CD) earning 12% annual simple interest.
Then, amount deposited in CD will be $ (n – 1700)
The total interest earned on both accounts for 1 year was $676
<em><u>The simple interest is given as:</u></em>
<em><u>Simple interest for purchase of new car:</u></em>
<em><u>Simple interest for CD:</u></em>
Now, given that S.I for new car + S.I for CD = 676
20n = 67600 – 20400
n = 2360
So money deposited in CD = n - 1700 = 2360 – 1700 = 660
Hence, the CD deposit amount is $660