Question 286674: Susan purchased some municipal bonds yielding 9% annually and some certificates of deposit yielding 10% annually. If Susan’s investment amounts to $17,000 and the annual income is $1640, how much money is invested in bonds and how much is invested in certificates of deposit?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Susan purchased some municipal bonds yielding 9% annually and some certificates of deposit yielding 10% annually. If Susan’s investment amounts to $17,000 and the annual income is $1640, how much money is invested in bonds and how much is invested in certificates of deposit?
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Equations:
Value: b + c = 17000
Interest: 0.09b + 0.10c = 1640
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Multiply thru 1st Eq. by 9
Multiply thru 2nd Eq by 100
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9b + 9c = 9*17000
9b + 10c = 164000
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Subtract 1st from 2nd and solve for "c":
c = $11,000 (Invested in certificates)
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Since b + c = 17000, b = $6000 (Invested in bonds)
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Cheers,
Stan H.
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