Question 90065
Let x = the amount to be invested in corporate bonds at 8.5% interest.
Then, ($30,000-x) would be invested in municipal bonds at 6.5% interest.
The total interest earned on these two investments is $2,190.
After changing the percentages to their equivalent decimal amounts (8.5% = 0.085 and 6.5% = 0.065), you can write the following equation:
x(0.085)+($30,000-x)(0.065) = $2,190 Simplify and solve for x.
0.085x+$1,950-0.065x = $2,190 Combine like-terms.
0.02x+$1,950 = $2,190 Subtract $1,950 from both sides.
0.02x = $240  Finally, divide both sides by 0.02
x = $12,000 This is the amount the client should invest in corporate bonds.
$30,000 - x = $30,000 - $12,000 = $18,000 is the amount the client would invest in municipal bonds.

Check:
(0.085)($12,000) + (0.065)($18,000) = $1,020 + $1,170 = $2,190  The total interest.