SOLUTION: To provide for retirement income, Teresa Puelo purchases a $7,000 bond that earns 7.5% annual simple interest. How much money does Teresa have invested in bonds that earn 9% annual
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Question 934846: To provide for retirement income, Teresa Puelo purchases a $7,000 bond that earns 7.5% annual simple interest. How much money does Teresa have invested in bonds that earn 9% annual simple interest if the total annual interest earned from the two investments is $885?
help me please?? Answer by vicgonzerx(31) (Show Source):
You can put this solution on YOUR website! IT=total interest =885
P1=7000 first bond principal amount
P2=? second bond principal amount w/c is the required
from formula
I=Pin
IT=P1in + P2in
885=7000(.075)(1) +P2(.09)(1)
P2=4000dollars is the answer
checking I=4000(.09)(1)
I=360 dollars
I=(7000*.075*1)
I=525 dollars
IT=525+360
IT=885 dollars
