SOLUTION: Mr. Sable invested $5000 in a mortgage that pays 9% interest annually. He bought bonds paying 4.5% interest annually. His total annual income is 6% of his total investment. How muc

Question 73131This question is from textbook
: Mr. Sable invested $5000 in a mortgage that pays 9% interest annually. He bought bonds paying 4.5% interest annually. His total annual income is 6% of his total investment. How much did he invest in the bonds. This question is from textbook

Answer by Earlsdon(6294) (Show Source): You can put this solution on YOUR website!
Probably, the trickiest part of solving word problems is setting up the equation that correctly reflects the given situation.
Let B equal the amount Mr. Sable invested in bonds.
The amount of interest earned by the mortgage investment can be written, after changing the percentage to its decimal equivalent:

The amount of interest eaned by the bonds investment can be written:

The total annual income can be written:
Put it all together and you get:
Simplify and solve for B.
Subtract 300 from both sides.
Subtract 0.045B from both sides.
Divide both sides by 0.015

Mr. Sable invested $10,000.00 in bonds.
Check:
= $900.00 Total earned interest.
= $900.00 Toatal earned interest.
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