Fernando invested money in a 3-yr CD (certificate of deposit) that returned the equivalent of 6.5% simple interest. He invested $3000 less in a 30-month CD that had a 2% simple interest return. If the total amount of interest from these investments was $1075.00, determine how much was invested in each CD. Fernando invested $_______ in the 3-yr CD and $_________ in the 30-month CD.
Fernando invested money in a 3-yr CD (certificate of deposit) that returned the equivalent of 6.5% simple interest. He invested $3000 less in a 30-month CD that had a 2% simple interest return. If the total amount of interest from these investments was $1075.00, determine how much was invested in each CD.
Fernando invested $_______ in the 3-yr CD and $_________ in the 30-month CD.
A Certificate of Deposit (CD) is a type of savings account offered by banks and other financial institutions where the customer agrees to leave their money in the account for a specified period of time, known as the term, in exchange for a fixed interest rate. CDs typically offer higher interest rates than regular savings accounts, but there is a penalty for withdrawing the money before the end of the term. The term can range from a few months to several years, and the longer the term, the higher the interest rate tends to be.
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