Geoff invests $1,200 in a certificate of deposit (CD) that earns 1.05% in interest compounded biannually, which means that he earns 1.05% of his existing money twice per year. The money he makes in interest is added to his account balance and rounded to the nearest cent. After 2 years, the CD matures. Geoff decides to use $400 of the funds to purchase a tablet and invest the remaining balance in another CD. How much money did Geoff invest in this second CD?

🎲 Try a Random Question  |  Total Questions in Quiz: 182  |  🧠 Study this quiz with Flashcards
This question is part of a full practice quiz:
ACT Math Practice Test 2 — practice the complete quiz, review flashcards, or try a random question.

The ACT Mathematics Test contains 60 questions to be answered in 60 minutes.  The hardest ACT math questions (the last 10 to 15 questions) fall into two types: advanced concepts and complex questions. Advanced concepts questions cover what you learn in precalculus and trigonometry. FYI: Students that get into Harvard College have an ACT score of 34–36.

Geoff invests $1,200 in a certificate of deposit (CD) that earns 1.05% in interest compounded biannually, which means that he earns 1.05% of his existing money twice per year. The money he makes in interest is added to his account balance and rounded to the nearest cent. After 2 years, the CD matures. Geoff decides to use $400 of the funds to purchase a tablet and invest the remaining balance in another CD. How much money did Geoff invest in this second CD?






ADVERTISEMENT