+225 kent invested $5000 in a retirement plan. he allocated x dollars off the money to a bond that earns 4% interest per year and the rest into a traditional account that earns 5% interest per year.
a. write an expression that represents the amount of money invested in the traditional account
b. write a polynomial model in simplest form for the total amount of money T Kent has invested after one year (hint: each account has A + iA dollars, where A is the original amount in the account and i is the interest rate)
c. if kent put $500 in the bond account, how much money does he have in his retirement plan after one year?
and help to this equation would help a lot. thanks!! :)
+118608 kent invested $5000 in a retirement plan. he allocated x dollars off the money to a bond that earns 4% interest per year and the rest into a traditional account that earns 5% interest per year.
$x into a bond at 4% pa
a. write an expression that represents the amount of money invested in the traditional account
$(5000-x) in the back at 5%pa
b. write a polynomial model in simplest form for the total amount of money T Kent has invested after one year (hint: each account has A + iA dollars, where A is the original amount in the account and i is the interest rate)
After one year the bond will grow to x + 0.04x
= x(1+0.04)
= 1.04x
After one year the traditional account will grow to
(5000-x) + 0.05(5000-x)
=5000-x + 0.05*5000 - 0.05x
=5000 - x + 250 - 0.05x
=5250 - 1.05x
So altogether
T = 1.04x + 5250 - 1.05x
T = 5250 - 0.01x
c. if kent put $500 in the bond account, how much money does he have in his retirement plan after one year?
x=500
T= 5250 - 0.01*500
T= 5250 - 5
T= $5245
