SOLUTION: You were given $20,000 to invest for 1 year in either 6% tax-free bonds or 8% taxable bonds. Your total investment income for the year was $1,330. How much was invested at each rat
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Question 999248: You were given $20,000 to invest for 1 year in either 6% tax-free bonds or 8% taxable bonds. Your total investment income for the year was $1,330. How much was invested at each rate? Answer by mananth(16946) (Show Source):
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Part I 6.00% per annum ---x
Part II 8.00% per annum ---y
Total investment
x + 1 y= 20000 -------------1
Interest on both investments
6.00% x + 8.00% y= 1330
Multiply by 100
6 x + 8 y= 133000.00 --------2
Multiply (1) by -6
we get
-6 x -6 y= -120000.00
Add this to (2)
0 x 2 y= 13000
divide by 2
y = 6500
Part I 6.00% $ 13500
Part II 8.00% $ 6500
