Question 261662: A total of $20,000 was invested in two bond mutual funds, a junk bond fund and a government bond fund. The junk bond fund is risky and yields 11% interest. The safer government bond fund yields only 5%. The total income for the year from the two investments was $1300. How much was invested in each fund?
Answer by checkley77(12844)   (Show Source):
You can put this solution on YOUR website! .11X+.05(20,000-X)=1,300
.11X+1,000-.05X=1,300
.06X=1,300-1,000
.06X=300
X=300/.06
X=5,000 INVESTED @ 11%
20,000-5,000=15,000 INVESTED @ 6%
PROOF:
.11*5,000+.05*15,000=1,300
550+750=1,300
1,300=1,300
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