Lured by the ad in the illustration below, a woman invested $11,100, some in a money market account and the rest in a 5-year CD. How much was invested in each account if the income from both investments is $978 per year? First Republic Savings and Loan Account Rate NOW 5.5% Savings 7.5% Money market 8.0% Checking 4.0% 5-year CD 9.0%
A) $2,700 in the money market account, $8,400 in the CD
B) $1,900 in the money market account, $9,200 in the CD
C) $1,600 in the money market account, $9,500 in the CD
D) $1,800 in the money market account, $9,300 in the CD
E) $2,100 in the money market account, $9,000 in the CD

Question

Quizplus · Accepted Answer

The income from the money market account at 8.0% and the CD at 9.0% should total $978. Solving the equations: 0.08x + 0.09(11100-x) = 978 gives x = $2,100 in the money market and $9,000 in the CD.

Lured by the Ad in the Illustration Below, a Woman