Question

A total of $20,000 is to be invested, some in bonds and some in certificates of deposit (CDs). If the amount invested in bonds is to exceed that in CDs by $3000, how much will be invested in each type of investment?
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Answer 1

Answer:

$8,500 in CDs; $11,500 in bonds

Step-by-step explanation:

Let c = amount invested in CDs.

Let b = amount invested in bonds.

"A total of $20,000 is to be invested, some in bonds and some in certificates of deposit (CDs)."

From the total investment, we get this equation.

c + b = 20000

"If the amount invested in bonds is to exceed that in CDs by $3000"

From the details of the amounts, we get this equation.

b = c + 3000

We have a system of equations in two unknowns.

c + b = 20000  Eq. 1

b = c + 3000  Eq. 2

Since Eq. 2 is already solved for b, we will use the substitution method to solve the system of equations.

Substitute b in Eq. 1 with c + 3000.

c + c + 3000 = 20000

2c + 3000 = 20000

2c = 17000

c = 8500

Now substitute c = 8500 in Eq. 2 and solve for b.

b = c + 3000

b = 8500 + 3000

b = 11500

Answer: $8,500 in CDs; $11,500 in bonds