SOLUTION: Two bond funds pay interest at rates that differ by 2%. Money invested for one year in the first fund earns $225 interest. The same amount invested in the second fund earns $275. F
Algebra.Com
Question 1073982: Two bond funds pay interest at rates that differ by 2%. Money invested for one year in the first fund earns $225 interest. The same amount invested in the second fund earns $275. Find the lower rate of interest.
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
Let n be the amount invested in each of these two bond fund, and r be the lower interest rate. Then the higher interest rate would be r+.02. So:
n(r)=225
n(r+.02)=275
So:
225/r=275/r+.02
275r=225r+4.5
50r=4.5
r=4.5/50=.09
The lower interest rate is .09, or 9%;while the higher interest rate is 11%. ☺☺☺☺
RELATED QUESTIONS
two bond funds pay interest at rates that differ by 2%. Money invested for one year in... (answered by Theo)
Two bond funds pay interest at rates that differ by 2%. Money invested for one year in... (answered by Theo)
Two bond funds pay interest at rates that differ by 4%. Money invested for one year in... (answered by richwmiller)
Two bond funds pay interest at rates that differ by 4%. Money invested for one year in... (answered by jorel555)
Two bond funds pay interest at rates that differ by 4%. Money invested for one year in... (answered by Boreal)
Two bond funds pay interest at rates that differ by 4%. Money invested for one year in... (answered by Theo)
Two bond funds pay interest at rates that differ by 3%. Money invested for one year in... (answered by Boreal)
Two bond funds pay interest at rates that differ by 3%. Money invested for one year in... (answered by ankor@dixie-net.com)
Two bond funds pay interest at rates that differ by 4%. Money invested for 1 year in the... (answered by richwmiller)