SOLUTION: Two bond funds pay interest at rates that differ by 4%. Money invested for one year in the first fund earns $440 interest. The same amount invested in the other fund earns $660. Fi

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Question 902165: Two bond funds pay interest at rates that differ by 4%. Money invested for one year in the first fund earns $440 interest. The same amount invested in the other fund earns $660. Find the lower rate of interest.
Answer by richwmiller(17219) About Me  (Show Source):
You can put this solution on YOUR website!
a*x=440
b*x=660
b=a+4
a*x=440
(a+4)*x=660
a*x+4x=660
440+4x=660
4x=220
x=55
55a=440
a=440/55
a=8%
b=12%
8% is lower