Fernando invested money in a 3–yr cd (certificate of deposit) that returned the equivalent of 3.8% simple interest. he invested $1000 less in a 6–month cd that had a 2% simple interest return. if the total amount of interest from these investments was $424.00, determine how much was invested in each cd.

The amount invested at 3–yr CD was $3,600 and the amount invested at 6–month CD was $2,600

Step-by-step explanation:

Let

x -----> the amount invested at 3–yr CD

x-$1,000 ----> the amount invested at 6–month CD

we know that

The simple interest formula is equal to

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

3–yr CD

substitute in the formula above

6–month CD

substitute in the formula above

Remember that

the total amount of interest from these investments was $424.00

so

substitute and solve for x

therefore

The amount invested at 3–yr CD was $3,600 and the amount invested at 6–month CD was $2,600

21

step-by-step explanation:

c

step-by-step explanation: