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Vesna [10]
3 years ago
6

Jack has $12,000 to invest and wants to earn 7.5% interest per year. He will put some of the money into a savings account that e

arns 4% per year and the rest into a CD account that earns 9% per year. How much money should he put into each account?
Mathematics
1 answer:
Marat540 [252]3 years ago
5 0

Jack should invest $8400 in the CD account and $3600 in the savings account.

Step-by-step explanation:

Jack wants to earn 7.5% interest per year. That implies he wants to earn

7.5/100*12000 per year i.e $900 per year.

Lets assume he invests X amount in the savings account. That leaves 12000-X to be invested in the CD account.

That implies,

4/100*X + 9/100*(12000-X) = 900

=> (4X+108000-9X)/100 = 900

=> -5X = 90000-1080000 = -18000

=> X = 3600

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