Glenn invested some money is a certificate of deposit (CD) with an annual yield of 9%. He invested twice as much money in a mutual fund with an annualy yield of 12%. His interest from the two investments at the end of the year was $396. How much money was invested at each rate? (l=prt)
9% investment ---- $x
12% investment ---$ 2x
solve
.09x + .12(2x) = 396
I suggest multiplying each term by 100
9x + 12(2x) = 39600
etc
To solve this problem, let's assume that Glenn invested x dollars in the certificate of deposit (CD). Since he invested twice as much money in the mutual fund, he invested 2x dollars in the mutual fund.
Now, let's calculate the interest earned from the CD. The formula for simple interest is I = PRT, where I is the interest earned, P is the principal (initial amount), R is the interest rate, and T is the time (in years). In this case, the interest earned from the CD is given as 9% of the principal, which is 0.09x.
Next, let's calculate the interest earned from the mutual fund. Similarly, the interest earned is given as 12% of the principal, which is 0.12(2x) = 0.24x.
Now, we can set up an equation based on the given information:
0.09x + 0.24x = 396
Combining the like terms, we get:
0.33x = 396
To solve for x, divide both sides of the equation by 0.33:
x = 396 / 0.33
x ≈ 1200
Therefore, Glenn invested approximately $1200 in the certificate of deposit (CD) and $2400 in the mutual fund.