Laura inherits 52000 and decides to invest part of it in an

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? Start by defining the unknown quantities in terms of a variable; then write an equation based on the information given and show all work as you solve the equation.

Solution

Answer:

So we know total amount = $ 52000.

Let the amount put in education account be \'x\', and that in the CD be \'y\'.

Then \'x\' is supposed to be 7000 more than twice \'y\'.

Also x and y add up to give the total amount.

Thus

x = 2y + 7000.
x + y = 52000.

Now we just need to solve these simultaneous equations for x and y. Let\'s rewrite them this way:

x + y = 52000
x - 2y = 7000

Now if we subtract the second equation from the first, we get:

3y = 45000
Thus y = 15000.

Plug this back in the total amount equation and you get x = 37000.

That\'s it! The two amounts are ready. x = 37000 and y = 15000.