Thank you for posting your question!
you want to start by setting up a system of equations in order to model this situation. If x is the amount in the bank certificate and y is the amount in the small cap the equations here could be:
x + y = 3500
0.03x + 0.16y = 200
substituting in and then solving for “x” this becomes
0.03x + 0.16(3500 – x) = 200
0.03x + 560 – 0.16x = 200
-0.13x = -360
x = -360 / -0.13
x = $2769.23
that means that y would be
y = $3500 – $2769.23
y = $730.77
so in aggregate you would want to invest $2769.23 in the bank certificate and then $730.77 in the small cap account to earn the total of $200 in interest
I hope that helps! Feel free to reach out via message for a lesson if you have any additional questions beyond that! :)
