SOLUTION: Mr. Sable invested $5000 in a mortgage that pays 9% interest annually. He bought bonds paying 4.5% interest annually. His total annual income is 6% of his total investment. How muc

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Mr. Sable invested $5000 in a mortgage that pays 9% interest annually. He bought bonds paying 4.5% interest annually. His total annual income is 6% of his total investment. How muc      Log On

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Question 73131This question is from textbook
: Mr. Sable invested $5000 in a mortgage that pays 9% interest annually. He bought bonds paying 4.5% interest annually. His total annual income is 6% of his total investment. How much did he invest in the bonds. This question is from textbook

Answer by Earlsdon(6294) About Me  (Show Source):
You can put this solution on YOUR website!
Probably, the trickiest part of solving word problems is setting up the equation that correctly reflects the given situation.
Let B equal the amount Mr. Sable invested in bonds.
The amount of interest earned by the mortgage investment can be written, after changing the percentage to its decimal equivalent:
5000%280.09%29
The amount of interest eaned by the bonds investment can be written:
B%280.045%29
The total annual income can be written:
%285000%2BB%29%280.06%29 Put it all together and you get:
5000%280.09%29%2BB%280.045%29+=+%285000%2BB%29%280.06%29 Simplify and solve for B.
450%2B0.045B+=+300%2B0.06B Subtract 300 from both sides.
150%2B0.045B+=+0.06B Subtract 0.045B from both sides.
150+=+0.015B Divide both sides by 0.015
10000+=+B
Mr. Sable invested $10,000.00 in bonds.
Check:
5000%280.09%29%2B10000%280.045%29+=+450%2B450 = $900.00 Total earned interest.
%285000%2B10000%29%280.06%29+=+15000%280.06%29 = $900.00 Toatal earned interest.