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Question 239280: Little Johnny invested $10,000. He put part of it in a bank at 5 percent interest. He put the remainder in bonds which pay a 9 percent annual return. How much did he invest in each method (savings bank and bond) if his annual income from the two investments was $660?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Little Johnny invested $10,000. He put part of it in a bank at 5 percent interest. He put the remainder in bonds which pay a 9 percent annual return. How much did he invest in each method (savings bank and bond) if his annual income from the two investments was $660?
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Equation:
Quantity Eq::: x + y = 10000
Interest Eq::0.05x+0.09y = 660
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Multiply thru the 1st equation by 5:
Multiply thru the 2nd equation by 100:
5x + 5y = 50000
5x + 9y = 66000
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Subtract the 1st from the 2nd and solve for "y":
4y = 16000
y = $4000 (amount invested at 5%)
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Since x+y = 10000, x = $6000 (amount invested at 9%)
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Cheers,
Stan H.
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