SOLUTION: An investor spends a total of $15,000 in two investments, a mortgage and a bond. The mortgage pays 10% interest and the bond pays 6% interest. If the total interest from both inves
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Question 667784: An investor spends a total of $15,000 in two investments, a mortgage and a bond. The mortgage pays 10% interest and the bond pays 6% interest. If the total interest from both investments for one year is $1,120, find the amount invested in the mortgage and the bond.
Answer by ReadingBoosters(3246) (Show Source): You can put this solution on YOUR website!
Establish variables
x = $ in mortgage
y = $ in bond
...
x+y = 15000
.1x + .06y = 1120
Substitute x into the second equation
...
.1(15000-y) + .06y = 1120
1500 - .1y + .06y = 1120
...
Group like terms
1500 - 1120 = .1y - .06y
380 = .04y
...
Divide both sides by .04
invested in bonds
...
x = 15000 - 9500
invested in mortgage
.....................
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