Answer: $7142.86
Step-by-step explanation:
Let the amount to be invested in the bond be represented by y.
Based on this, the amount to be invested in the CD will be: = 50000 - y.
From the information given, yearly interest on bond is 12%, this will be:
= 12% × y = 0.12 × y = 0.12y
Also, interest on CD will be:
= 5% × (50000 - y)
= 0.05(50000 - y)
Then, the equation to get the amount to be invested in bond will be:
0.12y + 0.05(50000 - y) = 3000
0.12y + 2500 - 0.05y = 3000
0.12y - 0.05y = 3000 - 2500
0.07y = 500
y = 500/0.07
y = 7142.8571
y = 7142.86
The amount to be invested in bond will be $7142.86
