SOLUTION: If an investor invests a total of $25,000 into two bonds, one that pays 3% simple interest, and the other that pays 2 7/8% interest, and the investor earns $737.50 annual interest,

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: If an investor invests a total of $25,000 into two bonds, one that pays 3% simple interest, and the other that pays 2 7/8% interest, and the investor earns $737.50 annual interest,      Log On


   

Question 1138487: If an investor invests a total of $25,000 into two bonds, one that pays 3% simple interest, and the other that pays 2 7/8% interest, and the investor earns $737.50 annual interest, how much was invested in each account?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
x at 3%
25000-x at 2.875%
.03x+718.75-.02875x=737.50
0.00125x=18.75
x=$15000 at 3% ($450)
and $10000 at 2.875% ($287.50)