SOLUTION: #63) The cross creek investment club has $20,000 to invest. The members of the club decided to invest $16,000 of thier money in 2 bond funds. The first, a mutual bond fund, earns

Question 163855This question is from textbook
: #63)
The cross creek investment club has $20,000 to invest. The members of the club decided to invest $16,000 of thier money in 2 bond funds. The first, a mutual bond fund, earns annual simple interest of 4.5%. the second account, a corporate bond fund, earns 8% annual simple interest. If the members $1070 from these two accounts, how much was invested in the mutual bond fund?
The answer is : there is 6000 invested in the mutual bond fund. What I need to know is what steps they used to solve it?
#61)An account executive divided 42,000 between two simple interst accounts. on the tax-free account the annual simple interest rate is 3.5%, and on the money market fund the annual simple interst rate is 4.5%. How much should be invested in each account so that both accounts earn the same annual interest.
The answer is: the amount invested at 3.5% IS $23,625, the amount invested at 4.5% is $18,375. What I need to know is the steps to solve the problem. This question is from textbook

Answer by elima(1433) (Show Source): You can put this solution on YOUR website!
63) x = amount invested
They invested a total of $16000 but we do not know how much in each account. Most likely they invested the larger amount in the 8% interest. So we will make x times 8%;
.08x; the amount invested at 8%
The remainder was invested at 4.5%, so we need to subtract that from $16000;
.045(16000-x)
They earned a total of $1070, so we add the two amounts together to equal 1070;
.08x + .045(16000-x)=1070
Now we solve for x;
.08x + 720 - .045x = 1070
collect like terms;
.035x+720=1070
Subtract 720 from both sides;
.035x=350
divide .035 to both sides;
x=10000
Now this is the amount at 8% in the corporate bond, so we subtract that from the 16000 - 10000 = $6000
61)We do not know how much interest was earned, but we do know that they are equal. So we will make these two equal to each other;
.045x = .035(42000-x)
.045x = 1470-.035x
.045x+.035x=1470
.08x=1470
x=$18375 - this would be the amount at 4.5%
42000-18375 = $23625 - amount at 3.5%
Hope you understand, let me know if you do not.
:)

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