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A mother wants to invest $7000 for her son's future education. She invests a portion of...

A mother wants to invest $7000 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $420, how much money was invested in the CD account? Round to the nearest cent if necessary.
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Answer #1

Let x be the amount invested in the CD account. Then, as the total was $7000, that amount kept in the savings bond is 7000-x

Interest earned by the CD account in one year at 4%

Interest earned by the savings bond in one year at 7%

The total interest earned in the first year is $420, so

Thus, roughly $ 2333.34 was invested in the CD account.

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