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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
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?
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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