SOLUTION: A total of $26,000 is invested in two corporate bonds that pay 3.5% and 5% simple interest. The investor wants an annual interest income of $1030 from the investments. What amount
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Question 868856: A total of $26,000 is invested in two corporate bonds that pay 3.5% and 5% simple interest. The investor wants an annual interest income of $1030 from the investments. What amount should be invested in the 3.5% bond? Answer by mananth(16946) (Show Source):
You can put this solution on YOUR website! Part I 3.50% per annum ------------- Amount invested =x
Part II 5.00% per annum ------------ Amount invested = y
26000
Interest----- 1030.00
Part I 3.50% per annum ---x
Part II 5.00% per annum ---y
Total investment
x + 1 y= 26000 -------------1
Interest on both investments
3.50% x + 5.00% y= 1030
Multiply by 100
3.5 x + 5 y= 103000.00 --------2
Multiply (1) by -3.5
we get
-3.5 x -3.5 y= -91000.00
Add this to (2)
0 x 1.5 y= 12000
divide by 1.5
y = 8000
Part I 3.50% $ 18000
Part II 5.00% $ 8000
