Laura inherits $30,000 and decides to invest part of it in an education account for her daughter and the rest in a 10-year CD. If the amount she puts in the education account is $5,000 more than twice the amount she puts in the CD, how much money does Laura invest in each account?
x + y = 30000
x= 5000 + 2y
5000 + 2y + y = 30000
3y = 25000
find y by dividing by 3
The find x, by subtracting this value from 30000.
Let's solve this step by step.
Let's assume that Laura invests x dollars in the CD. According to the given conditions, Laura invests $5,000 more than twice the amount she puts in the CD into the education account.
So, the amount Laura invests in the education account is 2x + $5,000.
The total amount Laura inherits is $30,000, and she invests part of it in the education account and the rest in the CD. Therefore, the equation to represent this situation is:
x + (2x + $5,000) = $30,000
Now, let's solve for x:
3x + $5,000 = $30,000
Subtracting $5,000 from both sides, we have:
3x = $25,000
Dividing both sides of the equation by 3, we find:
x = $8,333.33
So, Laura invests approximately $8,333.33 in the CD.
Now, let's calculate the amount she invests in the education account:
2x + $5,000 = 2($8,333.33) + $5,000 ≈ $21,666.67
Therefore, Laura invests approximately $8,333.33 in the CD and $21,666.67 in the education account.