Answer:
The amount deposited in the savings account is $11,494.12
The amount deposited in the CD account is $13,505.88
Step-by-step explanation:
Firstly, let’s calculate the amount of interest;
Interest = Amount at end of 10 years - amount deposited= 31,648 -25,000 = 6,648
Let the amount deposited in the savings account be $x while the amount deposited in the CD account be $y
Mathematically;
x + y = 25,000 ••••••••••(i)
Now the formula for simple interest is;
PRT/100
where P is the amount deposited, r is the rate and T is the time
On the savings account, amount of interest generated will be;
(x * 2.2 * 10)/100 = 22x/100
On the CD act, amount of interest generated will be;
(y * 3.05 * 10)/100 = 30.5y/100
The addition of both give the total interest;
22x/100 + 30.5y/100 = 6648
Multiply through by 100
22x + 30.5y = 664800 •••••••(ii)
From i, x = 25,000 - y
Substitute this into ii
22(25000-y) + 30.5y = 664800
550,000 -22y + 30.5y = 664,800
8.5y = 664,800-550,000
8.5y = 114,800
y = 114,800/8.5
y = $13,505.88
x = 25,000 -y
x = 25,000 - 13,505.88
x = $11,494.12
