Ashley has to invest and decides to put some in a CD that earns interest per year and the rest in a low-risk stock that earns . How much did she invest in each to earn interest in the first year?
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that is i would require , the rate of interest for both, rate of interest earned and the amount she has to invest
Ashley has $120,000 to invest and decides to put some in a CD that earns 5 % interest per year and the rest in a low-risk stock that earns 1 %. How much did she invest in each to each to earn $4,400
let x be the amount invested in CD
120000 -x = amount invested in low risk stocks
interest on CD
I1 = 5x/100
interest on low risk stock
I2 = (120000-x)/100
I = I1+I2 = 5x/100 +(120000-x)/100 = 4400
4400 = 0.05x +1200-0.01x
4400 = 1200+0.04x
4400-1200 = 0.04x
3200 = 0.04x
x = 80,000
so she invests 80 000 in CD
and 120000-80000 = 40 000 in low risk stocks
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