SOLUTION: Whitney Williamson has $30,000 she would like to invest. She has a choice of two interest paying ponds, one offering 6% annual interest and the other paying 7.5% annual interest. S

Question 212813: Whitney Williamson has $30,000 she would like to invest. She has a choice of two interest paying ponds, one offering 6% annual interest and the other paying 7.5% annual interest. She would like to earn $2,100 in interest in one year. If she earns more than $2,100, she would need to pay a higher income tax. How much money should she invest in each bond?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
you have 2 equations that need to be solved simultaneously.
-----
x + y = 30,000
.075x + .06y = 2100
-----
multiply first equation by .06 to get:
.06x + .06y = 1800
subtract it from second equation of:
.075x + .06y = 2100 to get:
.015x = 300
divide both sides by .015 to get:
x = 20,000
this makes:
y = 10,000
-----
.075 * 20,000 + .06 * 10,000 = 1500 + 600 = 2100
-----
answer is:
she should invest $20,000 in the bond earning .075 interest rate per year and she should invest $10,000 in the bond earning .06 interest rate per year.
note:
.075 interest rate = 7.5%
.06 interest rate = 6%
-----
She will earn $2,100 in interest.
-----

RELATED QUESTIONS
Jenny has R90 000 to invest. She has chosen one relatively safe investment fund that has... (answered by josmiceli)

Betsy, a recent retiree, requires $6,000 per year in extra income. She has... (answered by ikleyn)

Betsy, a recent retiree, requires $6,000 per year in extra income. She has... (answered by Theo,greenestamps,math_tutor2020)

Kara wants to remodel her kitchen. She budgets $25,000 for the job. Her bank is offering... (answered by mananth)

1. Ellen has $8000 to invest in an RESP (Registered Education Savings Plan) for 7 years.... (answered by josmiceli)

Heather has a total of $5000 to invest. She puts part of it in an account paying 5%/year (answered by greenestamps)

Juanita has 22000 to invest in two accounts that pay simple interest on an annual basis.... (answered by mananth)

Solve Problems Using Linear Systems 14. Mengxi has $10 000 to invest. She invests part... (answered by badbadjoe)

jill wants to save to buy a car she has a choice between two different banks . one bank... (answered by Theo)