Suppose you have $5000 to invest. A certificate of deposit (CD) earns 6% annual interest, while bonds, which are more risky, earn 8% annual interest. You decide to invest $2000 in a CD and the rest in bonds. How much interest will you have earned at the end of one year?
a.
$386.40
b.
$360
c.
$401.38
d.
$500.49

Question

Suppose you have $5000 to invest.  A certificate of deposit (CD) earns 6% annual interest, while bonds, which are more risky, earn 8% annual interest.  You decide to invest $2000 in a CD and the rest in bonds.  How much interest will you have earned at the end of one year?
a.
$386.40
b.
$360
c.
$401.38
d.
$500.49

anonymous · Answer

so u can calculate interests for both individually and add them together to get the total
so for CD its P = 2000, I = 0.06 and T = 1
Interest = P *R*T
and similarly for the bond -  P = 3000, I = 0.08 and T = 1