I have $6250 and open a checking and a CD. The bank pays 2.6% interest on CD and 0.05% ineterest on checking. At end of year I earn $127.50 how much was made on each account

Question

I have $6250 and open a checking and a CD.  The bank pays 2.6% interest on CD and 0.05% ineterest on checking. At end of year I earn $127.50 how much was made on each account

amistre64 · Answer

c = 6250-s

c(.026) + s(.0005) = 127.50

(6250-s)(.026) + s(.0005) = 127.50

162.50 - .026s + .0005s = 127.50

162.50 - 127.50 = .026s -.0005s

35 = 0.0255s
35 / .0255 = s

initial investment in savings = 1372.55
initial investment on CD = 4877.45

CD = 4877.45(.026) = 126.8137

savings = 1372.55(.0005) = 0.686275

together they equal:  127.499975

amistre64 · Answer

almost lost all that valueable work to a frozen screen.... but I is smart :)