Question

Becky inherits $125,000 and decides to invest part of it in in an education account for her daughter and the rest in a CD. If the ampount in the education account is $20,000 more than twice the amount she puts in the CD, how much money does Becky invest in each account? Start by defining the unknown quantities in terms of a variable; then write an equation based on the information given and show all work as you solve the equation. Write a complete answer including units.

Answer 1

X will stand for the amount invested in a CD. The amount put into the education account will be written in terms of x.

(2x + 20000) + x = 125000
3x + 20000 = 125000
- 20000 -20000
3x = 105000; divide by 3 on both sides

x = $35000

Becky will have $35,000 in the CD, and $90,000 (2 x $35000 + $20000) in the education account.