Solve the problem.
-Kevin invested part of his $5000 bonus in a certificate of deposit that paid 2% annual simple interest, and the remainder in a mutual fund that paid 4% annual simple interest. If his total
Interest for that year was $140, how much did Kevin invest in the mutual fund?
A) $4986.00
B) $4846.00
C) $2000.00
D) $2140.00

Question

Quizplus · Accepted Answer

Let the amount invested in the certificate of deposit be $x. Therefore, the amount invested in the mutual fund is $5000 - x. The interest from the certificate of deposit is 0.02x, and the interest from the mutual fund is 0.04(5000 - x). The total interest is $140, so the equation is 0.02x + 0.04(5000 - x) = 140. Solving this equation gives x = $3000 for the certificate of deposit, meaning $2000 was invested in the mutual fund.

Solve the Problem. -Kevin Invested Part of His $5000 Bonus in a Certificate