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Question 519671: A total of $15,000 is invested in two corporate bonds that pay 5% and 7% simple annual interest. The investor wants to earn $880 in interest per year from the bonds. How much should be invested in each bond?
Answer by Earlsdon(6294)   (Show Source):
You can put this solution on YOUR website! Let x =the amount to be invested in the corporate bonds that pay 5% simple interest per annum, then the remainder of the $15,000, that is (15000-x) will be the amount to be invested in the corporate bonds that pay 7% interest per annum. The sum of the interest earned on these two amounts can be expressed as:
0.05x+0.07(15000-x) = 880 Simplify.
0.05x+1050-0.07x = 880 Combine like-terms.
-0.02x+1050 = 880 Subtract 1050 from both sides.
-0.02x = -170 Divide by -0.02
x = 8500 and 15000-x = 15000-8500 = 6500.
$8,500 should be invested in the corporate bonds that 5% interest per annum while $6,500 should be invested in the corporate bonds that pay 7% interest per annum to obtain a total of $880 interest from both investments.
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