A mother wants to invest $12,000 00 for her son's future educationShe invests a portion of the money in a bank certificate of deposit (CD account which earns and the remainder in a savings bond that earns 7%

Accounting Dec 01, 2020

A mother wants to invest $12,000 00 for her son's future educationShe invests a portion of the money in a bank certificate of deposit (CD account which earns and the remainder in a savings bond that earns 7%. If the total interesteamed after one year is 5720.00, how much money was invested in the CD sco? bus The total interest earned after one year is 5720.00 timediat How much money was invested in the CD account? (Round to the nearest cent, if necessary) apter Conte Text tudy Plan Tools For Suce Enter your answer in the answer box and then click Check Answer All parts showing

Expert Solution

The correct answer is

$ 4000

Calculation

Amount invested in CD = Total - amount invested bond

X = 12000 - Y

Y = 12000 -X

Interest earned = X4% + 7%(12000-X)

720 = .04X +840 - .07X

720-840 = -.03X

-120 = .03X

120/.03 = X

4000 = X

So the correct answer is $ 4000

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