document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1072679>Question 1072679</A>: <I><SPAN STYLE=\"word-break: break-all;\"> two bond funds pay interest at rates that differ by 2%.  Money invested for one year in the first fund earns $315 interest.  The same amount invested in the second fund earns $405.  Find the lower rate of interest.   </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #687528 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=687528\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> let y = the investment.\r<BR>\n" );
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document.write( "let x = the lower interest rate.\r<BR>\n" );
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document.write( "the higher interest rate is 2% more than the lower interest rate.\r<BR>\n" );
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document.write( "that makes the higher interest rate equal to x + .02\r<BR>\n" );
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document.write( "the interest using the lower interest rate is 315.\r<BR>\n" );
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document.write( "the interest using the higher interest rate is 405.\r<BR>\n" );
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document.write( "you get:\r<BR>\n" );
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document.write( "y * x = 315\r<BR>\n" );
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document.write( "y * (x + .02) = 405\r<BR>\n" );
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document.write( "subtract the first equation from the second to get:\r<BR>\n" );
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document.write( "y * (x + .02) - y * x = 405 - 315\r<BR>\n" );
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document.write( "simplify to get:\r<BR>\n" );
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document.write( "y * x + .02 * y - y * x = 405 - 315\r<BR>\n" );
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document.write( "combine like terms to get:\r<BR>\n" );
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document.write( ".02 * y = 90\r<BR>\n" );
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document.write( "solve for y to get y = 90 / .02 = 4500.\r<BR>\n" );
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document.write( "this makes the investment equal to 4500.\r<BR>\n" );
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document.write( "now that you know y, you can solve for x.\r<BR>\n" );
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document.write( "the first equation is y * x = 315\r<BR>\n" );
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document.write( "replace y with 4500 and you get 4500 * x = 315\r<BR>\n" );
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document.write( "solve for x to get x = 315 / 4500 = .07\r<BR>\n" );
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document.write( "that's the smaller rate.\r<BR>\n" );
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document.write( "the larger rate is .02 more than that.\r<BR>\n" );
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document.write( "this makes the larger rate = .09\r<BR>\n" );
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document.write( "4500 * .07 = 315\r<BR>\n" );
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document.write( "4500 * .09 = 405\r<BR>\n" );
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document.write( "solution is confirmed to be good.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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