We begin by identifying two variables: let
\(x\) represent the amount invested at
\(3.125\)%=
\(0.03125\text{,}\) and let
\(y\) represent the amount invested at
\(4.75\)%=
\(0.0475\text{.}\)
The total amount in both accounts can be expressed as
\begin{equation*}
x+y=12,800
\end{equation*}
To set up a second equation, use the fact that the total interest was \(\$465\text{.}\) The interest for one year is the interest rate times the principal (\(I=prt=pr\cdot 1=pr\)). Use this to add the interest in both accounts. Be sure to use the decimal equivalents for the interest rates given as percentages.
\begin{equation*}
\begin{aligned} \text{interest from the CD }\, \amp + \, \text{interest from the fund } \amp =\amp \text{total interest}\\ 0.03125x \amp + 0.0475y \amp = \amp 465 \end{aligned}
\end{equation*}
These two equations together form the following linear system:
\begin{equation*}
\left\{\begin{array}{rrl} x\amp +y\amp =12,800\\ 0.03125x \amp + 0.0475y \amp = 465 \end{array}\right.
\end{equation*}
Eliminate \(x\) by multiplying the first equation by \(-0.03125\text{.}\)
\begin{align*}
\left\{\begin{array}{rrrl} (\alert{-0.03125})\amp ( x\amp +y\amp =12,800)\\ \amp 0.03125x \amp + 0.0475y \amp = 465\\ \end{array}\right.\\
= \left\{\begin{array}{rrl} -0.03125x\amp -0.03125y\amp = -400\\ 0.03125x \amp + 0.0475y \amp = 465 \end{array}\right.
\end{align*}
Next, we add the equations together.
\begin{equation*}
\begin{aligned} \alert{-0.03125x}\amp -0.03125y\amp = -400\\ \alert{0.03125x} \amp + 0.0475y \amp = 465\\ \hline\\ \amp \, 0.01625y\amp=65 \end{aligned}
\end{equation*}
This gives \(y=\frac{65}{0.01625}=4,000\text{.}\) We use this for a substitution to find \(x\text{.}\)
\begin{equation*}
\begin{aligned} x+y\amp = 12,800\\ x+4,000\amp = 12,800\\ x\amp =8,800 \end{aligned}
\end{equation*}
Of the money invested,
\(\$4,000\) was invested at
\(4.75\)% and
\(\$8,800\) was invested at
\(3.125\)%.