Question

Last year, Ivan invested his money in two purchases. He purchased a certificate of deposit for $2000 that paid 4% interest per year and purchased $6000 in corporate bonds paying 9% interest per year. Answer the questions below. Do not do any rounding.

a)what was the total interest earned at the end of one year?
b)what was the percent interest for his total investment?

Answer 1

Answer: a) $620 ; b) 7.75 %

Step-by-step explanation: To calculate the eran money y due to the investment we have to add the two quantities.

the 4% for $2000 and 9% for $6000

This is: $80+$540= $620

Finally to determine the percent interest for his total investment, we have to divide the erned money over the total money, that is:

% earned=$620/$8000= 0.0775 the 7.75 %