document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=599891>Question 599891</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Cabin Financial Service Group recommends that a client purchase for $10,000 a corporate bond that earns 7% annual simple interest. How much additional money must be placed in U.S. government securities that earn a simple interest rate of 4% so that the total annual interest earned from the two investments is 4.5% of the total investment?\r<BR>\n" );
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document.write( "I have tried to set this up in a way that I have used to solve my other problems that are similar to this, but I have been unsuccessful so far. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #379129 by </B><A HREF=/tutors/aboutme.mpl?userid=Nihal@SriLanka><B>Nihal@SriLanka(22)</B></A><img src=\"/images/stars/stars-07.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Nihal@SriLanka><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=379129\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> let's assume additional sum invested in government securities is $ x.\r<BR>\n" );
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document.write( "Total investment                  = $ x+10000<BR>\n" );
document.write( "Interest on total investment      = $ (x+10000) * 4.5/100<BR>\n" );
document.write( "Interest on corporate bond        = $ 10000 * 7/100       = $ 700<BR>\n" );
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document.write( "Interest on government securities = $ x * 4/100\r<BR>\n" );
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document.write( "Since the interest from both sources should add up to total interest earned<BR>\n" );
document.write( "we get the following equation which we proceed to solve\r<BR>\n" );
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document.write( "        (x+10000) * 4.5/100 = 700 + x * 4/100\r<BR>\n" );
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document.write( "Multiplying both sides by 100 we have<BR>\n" );
document.write( "        (x+10000) * 4.5     = 70000 + x *4<BR>\n" );
document.write( "i.e.     4.5x + 45000       = 70000 + 4x<BR>\n" );
document.write( "i.e.     4.5x - 4x          = 70000 - 45000<BR>\n" );
document.write( "i.e.     0.5x               = 25000<BR>\n" );
document.write( "i.e.        x               = 25000 * 2\r<BR>\n" );
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document.write( "Hence amount to be invested in government securities is $ 50,000.      <BR>\n" );
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