You have $1000 between a mutual fund and a CD at a bank. The mutual fund gives 8% interest and the CD gives 4% interest. If the total amount of interest you received was $70. How much did you have in each account?

Question

You have $1000 between a mutual fund and a CD at a bank.  The mutual fund gives 8% interest and the CD gives 4% interest.  If the total amount of interest you received was $70.  How much did you have in each account?

anonymous · Answer

Are you actually typing something?

mimi_x3 · Answer

So its more of an algebraic question rather than a financial problem
So lets assume you earn simple interest .
Im also gonna assume that you originally had $1000 and now after maturity have 1070
So you started off with 1000 bucks

We have invested X amount of dollars in a Mutual Fund
and the rest obv was invested into  CD
we have a total of 1000 bucks so 1000-x is the amt set aside for CD

Lets write our equation in terms of the interest received from each account
We received 8% from MF and 4% from CD so our equation looks as follows:
.08(x)+.04(1000-x)=70
Solve for X

anonymous · Answer

x= 750

mimi_x3 · Answer

Yes

mimi_x3 · Answer

But that isnt the complete answer
So x represents the amt of money invested in MF
Now you need to determine the amt of money invested in CF

mimi_x3 · Answer

CD*