Laura inherits $52,000 and decides to invest part of it in an education account for her daughter and the rest in a 5-year CD. If the amount she puts in the education account is $7,000 more than twice the amount she puts in the CD, how much money does Laura invest in each account?
amount into CD --- x
amount into Ed Account --- 2x+7000
x + 2x+7000 = 52000
all yours ...
15000
To solve this problem, we can set up two equations based on the given information.
Let's say Laura invests x dollars in the CD account. According to the problem, the amount she puts in the education account is $7,000 more than twice the amount she puts in the CD account. So, the amount she puts in the education account is (2x + $7,000).
The total amount of money she inherited is $52,000. Therefore, the sum of the amounts invested in the CD and education accounts must be equal to $52,000.
So, our first equation is:
x + (2x + $7,000) = $52,000
Let's simplify this equation:
3x + $7,000 = $52,000
Now, let's isolate the variable x:
3x = $52,000 - $7,000
3x = $45,000
x = $45,000 / 3
x = $15,000
So, Laura invests $15,000 in the CD account.
To find out how much she invests in the education account, we can substitute x with $15,000 in the expression (2x + $7,000):
2($15,000) + $7,000 = $30,000 + $7,000 = $37,000
Therefore, Laura invests $15,000 in the CD account and $37,000 in the education account.