SOLUTION: David Saxon invested $25000 in two different corporate bonds for 1 year.One bond pays a 4.5% simple interest rate. and the other pays 6% simple interest rate. The Total annual inte
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Question 744222: David Saxon invested $25000 in two different corporate bonds for 1 year.One bond pays a 4.5% simple interest rate. and the other pays 6% simple interest rate. The Total annual interest David received from both bonds was $1380. Find the amount he invested for each bond. For 1 year,the simple interest on a specific corporate bond is found by multiplying the amount invested by the simple interest rate.
Answer by mananth(16946) (Show Source): You can put this solution on YOUR website!
Part I 4.50% per annum ------------- Amount invested =x
Part II 6.00% per annum ------------ Amount invested = y
25000
Interest----- 1380.00
Part I 4.50% per annum ---x
Part II 6.00% per annum ---y
Total investment
x + 1 y= 25000 -------------1
Interest on both investments
4.50% x + 6.00% y= 1380
Multiply by 100
4.5 x + 6 y= 138000.00 --------2
Multiply (1) by -4.5
we get
-4.5 x -4.5 y= -112500.00
Add this to (2)
0 x 1.5 y= 25500
divide by 1.5
y = 17000
Part I 4.50% $ 8000
Part II 6.00% $ 17000
CHECK
8000 --------- 4.50% ------- 360.00
17000 ------------- 6.00% ------- 1020.00
Total -------------------- 1380.00
m.ananth@hotmail.ca
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