Mike invested $2000 in bonds and certificate of deposits. the bonds paid 5% and the CD's paid 4.5% if his total interest earned was $93.75 for the year, how much did he invest in each type?
Solution
Let x = investment in bonds
2000-x = investment in certificate of deposits
Therefore, .05x + .045(2000-x) = 93.75
Hence, x = $750
Therefore, Mike needs to invest $750 in bonds and $1,250 in certificate of deposits.
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