SOLUTION: Two bond funds pay interest at rates that differ by 3%. Money invested for one year in the first fund earns $495 interest. The same amount invested in the other fund earns $660. Fi
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-> SOLUTION: Two bond funds pay interest at rates that differ by 3%. Money invested for one year in the first fund earns $495 interest. The same amount invested in the other fund earns $660. Fi
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Question 1153344: Two bond funds pay interest at rates that differ by 3%. Money invested for one year in the first fund earns $495 interest. The same amount invested in the other fund earns $660. Find the lower rate of interest. Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! lower rate is x %
Money M at x%=495
same M at (x+.03)=660
mx=495
mx+.03m=660
substitute
495+.03m=660
.03m=165
m=5500
now 5500*x=495
x=.09 or 9% ANSWER
other interest rate is 12% or .12
5500*0.12=$660
