Simon invested in a certificate in

stephanie953

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Dec 14, 2006
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I just wanted to make sure I got the correct answer for this problem:

Simon invested in a certificate of deposit at Blue Bank. The CD pays an annual yield of 5%. He invested twice as much in a CD from Green Bank, which pays an annual yield of 8%. If his total income for one year on the two investments is $840, then how much did he invest in each CD?

X= Blue Bank

0.05X + 0.08(2X) = 840
0.05X + 0.16X = 840
0.21X = 840
0.21X/0.21 = 840/0.21
X = 4000


Blue Bank (X) = $4000.00
Green Bank (2X) = $8000.00
 
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