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Nick S.

asked • 02/03/16

Word problem question about investments

I've been having trouble with this word problem and wondered if anyone could shed some light. If you could explain how it's done, that'd be great! Thanks!
 
A mother wants to invest $15,000.00 for her son's future education. She invents a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $900.00, how much money was invested in the CD account?

Sanhita M.

need to know if the rate of interest is compound and then how many times in a year the interest is compounded. and also if the frequency of compounding interest is at equal interval of times.
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02/03/16

1 Expert Answer

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Kenneth P. answered • 02/03/16

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New to Wyzant

My strength regarding tutoringis that I can explain complex ideas

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