Question 60022This question is from textbook Algebra Structure and Method Book 1
: The Creatice Arts Fund must raise $2500 next year by investing $30,000 in federal notes peying 9% and in municipal bonds paying 8%. The treasurer wants to inveset as much as possible in the bonds, even though they pay less, because the bonds are for projects in the local area. How much should the treasurer invest in bonds?
This question is from textbook Algebra Structure and Method Book 1
Answer by uma(370)   (Show Source):
You can put this solution on YOUR website! Let the amount invested in federal notes be x$
Then amount invested in bonds = (30,000 - x)$
Yield from the federal notes = 0.09x
Yield from the bonds = (30,000-x)(0.08)
From the data given,
0.09x + (30,000-x)(0.08) = 2500
==> 0.09x + 30,000*0.08 - 0.08x = 2500
==> 0.09x + 2400 - 0.08x = 2500
==> 0.01x + 2400 = 2500
==> 0.01x +2400 - 2400 = 2500 - 2400
==> 0.01x = 100
==> 0.01x/0.01 = 100/0.01
==> x = 10,000
==> the amount invested in federal notes = $10,000
and the amount invested in bonds = 30,000-10,000
= 20,000$
Good Luck!!!
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