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Step-by-step explanation:
Answer:
They should put $6750 in the bank account and $20,250 in the stock fund.
Step-by-step explanation:
Consider the provided information that Avery and Caden have saved $27000.
Let <em>x</em> is the money deposit in the bank and <em>y</em> is the money deposit in stock fund.
Therefore,
<em>x</em> + <em>y</em> = 27000
<em>x</em> = 27000 - <em>y</em>
The bank account will pay 2.4% annual interest.
Stock fund pays 7.2% annual interest.
Therefore,
1.024 <em>x</em> + 1.072 <em>y</em> = 1.06 × 27000
Substitute the <em>x</em> = 27000 - <em>y</em> in above equation.
1.024 (27000 − <em>y</em>) + 1.072 <em>y</em> = 1.06 × 27000
27648 − 1.024 <em>y</em> + 1.072 <em>y</em> = 28620
0.048 <em>y</em> = 28620-27648
0.048 <em>y</em> = 972
<em>y</em> = 20250
Now, substitute the <em>y</em> = 20250 in <em>x</em> = 27000 - <em>y</em>.
<em>x</em> = 27000 − 20250
<em>x</em> = 6750
Hence, they should put $6750 in the bank account and $20,250 in the stock fund.