Question 73131
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(0.09)}}}
The amount of interest eaned by the bonds investment can be written:
{{{B(0.045)}}}
The total annual income can be written:
{{{(5000+B)(0.06)}}} Put it all together and you get:
{{{5000(0.09)+B(0.045) = (5000+B)(0.06)}}} Simplify and solve for B.
{{{450+0.045B = 300+0.06B}}} Subtract 300 from both sides.
{{{150+0.045B = 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(0.09)+10000(0.045) = 450+450}}} = $900.00 Total earned interest.
{{{(5000+10000)(0.06) = 15000(0.06)}}} = $900.00 Toatal earned interest.