Question

Mengxi has $10 000 to invest. She invests part in a term deposit paying 5% / year, and the remainder in Canada Savings Bonds paying 3.5%/year. At the end of the year, she has earned simple interest of $413. How much did she invest at each rate?

Answer 1

Answer:

Mengxi invested $4200 in term deposit and

$5800 in Canada Savings Bonds

Step-by-step explanation:

Let's consider Mengxi's term deposit investment as x and Canada Savings Bonds investment as y.

So, x+y =10000

x= 10000-y. —Eq.1

Interest earned by x investment = x×1×5/100

= x/20

Interest earned by y investment = y×1×3.5/100

= 7y/200

Total interest earned is 413

Hence, x/20+7y/200 = 413

=> 10x/200+7y/200 = 413

=> (10x+7y)/200 = 413

=> 10x+7y = 413×200

Substituting x usin Eq.1,we get

=> 10×(10000-y)+7y = 82600

=> 100000-10y+7y = 82600

=> 100000-3y = 82600

=> 100000-82600 = 3y

=> 3y = 17400

=> y = 17400/3

=> y = 5800

Using Eq.1, we get

x= 10000-5800 = 4200