SOLUTION: a university alumni association invested part of 20,000 in preferred stock that earns 8% annual simple interest, and the remainder in a municipal bond that earns 7% annual simple i
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Question 443554: a university alumni association invested part of 20,000 in preferred stock that earns 8% annual simple interest, and the remainder in a municipal bond that earns 7% annual simple interest. The amount of interest earned each year is 1520. How much was invested in each account?
You can put this solution on YOUR website! .08x+.07(20000-x)=1520
.08x+1400-.07x=1520
.01x=120
x=12000
20000-x=8000
$12000 was invested in preferred stock, $8000 in a municipal bond..
