I want to save for my son's college education. I have $5,000 to invest in three different plans. A savings account pays 1% interest, a certificate of deposit which pays 3% interest, and a prepaid college plan which pays 6%. In order not to put all my eggs in one basket, I would like to invest the same amount in the prepaid college plan as in the other two accounts put together. How much should I invest in each category in order to earn $215 in interest the first year?
I want to save for my son's college education. I have $5,000 to invest in three different plans. A savings account pays 1% interest, a certificate of deposit which pays 3% interest, and a prepaid college plan which pays 6%. In order not to put all my eggs in one basket, I would like to invest the same amount in the prepaid college plan as in the other two accounts put together. How much should I invest in each category in order to earn $215 in interest the first year?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![(1) I want to save for my son's college education. I have $5,000 to invest in three different
plans. A savings account pays 1% interest, a certificate of deposit which pays 3%
interest, and a prepaid college plan which pays 6%. In order not to put all my eggs
in one basket, I would like to invest the same amount in the prepaid college plan as
in the other two accounts put together. How much should I invest in each category
in order to earn $215 in interest the first year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4100da26-36bd-43a6-aafd-ee8e0ffe886a%2Fd65a25ad-7217-4c87-8b8f-17f3867e03ad%2Ffo9geup_processed.png&w=3840&q=75)
Transcribed Image Text:(1) I want to save for my son's college education. I have $5,000 to invest in three different
plans. A savings account pays 1% interest, a certificate of deposit which pays 3%
interest, and a prepaid college plan which pays 6%. In order not to put all my eggs
in one basket, I would like to invest the same amount in the prepaid college plan as
in the other two accounts put together. How much should I invest in each category
in order to earn $215 in interest the first year?
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