You Have $5000 to Invest

question 172

Short Answer

You have $5000 to invest. Part of the money will be invested in a CD earning 2% simple interest and the rest in a bond fund earning 3% interest. In one year you will earn $122.50 in interest.
How much did you invest in each account?

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Definitions:

Discount

A reduction from the usual cost of something, often used to encourage sales or purchases.

Debt Financing

A method of raising capital through borrowing, which involves taking loans or issuing bonds.

Equity Financing

A method of raising capital through the sale of shares in a company, giving investors ownership interests.

Ownership Interests

Pertains to rights or claims individuals or entities have in an asset, potentially entitling them to income generated by the asset and a share in the asset's liquidation proceeds.