SOLUTION: Two bond funds pay interest at rates that differ by 4%. Money invested for one year in the first fund earns $450 interest. The same amount invested in the other fund earns $650. Fi

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Question 1109515: Two bond funds pay interest at rates that differ by 4%. Money invested for one year in the first fund earns $450 interest. The same amount invested in the other fund earns $650. Find the lower rate of interest.

Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
Same amount of money with a 4% interest rate difference earns $200 more. If 4% more makes $200 more, then the amount is $5000, $200/.04.
The first fund is $5000@9% to get $450 interest
The second fund is $5000@13% to get $650 interest
lower rate of interest is 9%