Ms. Adams received a bonus check for $12,000. She decided to divide the money am
ID: 2910989 • Letter: M
Question
Ms. Adams received a bonus check for $12,000. She decided to divide the money among three different investments. With some of the money, she purchased a municipal bond paying 5.8% simple interest. She invested twice the amount she paid for the municipal bond in a certificate of deposit paying 4.9% simple interest. Ms. Adams placed the balance of the money in a money market account paying 3.7% simple interest. If Ms. Adams' total interest for one year was $534, how much was placed in each account?
Question 8 options:
municipal bond: $ 1500 certificate of deposit: $ 3000 money market: $ 7500
municipal bond: $ 1750 certificate of deposit: $ 3500 money market: $ 6750
municipal bond: $ 2000 certificate of deposit: $ 4000 money market: $ 6000
municipal bond: $ 2500 certificate of deposit: $ 5000 money market: $ 4500
municipal bond: $ 1500 certificate of deposit: $ 3000 money market: $ 7500
municipal bond: $ 1750 certificate of deposit: $ 3500 money market: $ 6750
municipal bond: $ 2000 certificate of deposit: $ 4000 money market: $ 6000
municipal bond: $ 2500 certificate of deposit: $ 5000 money market: $ 4500
Explanation / Answer
let amount paid for munciple bond =x , amount invested in certificate of deposit=y , amount placed in money market account =z
She invested twice the amount she paid for the municipal bond in a certificate of deposit. =>y =2x
x+y+z=12000
=>x+2x +z =12000
=>z=12000 -3x
total interest =534
=>5.8%x +4.9%y +3.7%z =534
=>5.8x +4.9y +3.7z =53400
=>5.8x +4.9*2x +3.7*(12000 -3x) =53400
=>5.8x +9.8x +44400 -11.1x =53400
=>5.8x +9.8x -11.1x =53400-44400
=>4.5x =9000
=>x=9000/4.5
=>x=2000
y=2x,x=2000
=>y=2*2000
=>y=4000
z=12000 -3x, x=2000
=>z=12000 -3*2000
=>z=12000 -6000
=>z=6000
municipal bond: $ 2000 ; certificate of deposit: $ 4000 ; money market: $ 6000
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