Investments and Bonds???

Question

Carl invested part of $300,000 in bonds that pay 8.5% interest annually. The other part was invested in a simple interest account that paid 10%. How much is invested in each, if the total annual interest amounts to $28,500

Answer 1

let Carl invest x amount for 8.5% and the remaining (300,000 -x) amount for 10% .

 

interest on first part = x* 0.085 *1 = $ 0.085x

interest on second part = (300,000 - x)*0.10*1 = 30,000 - 0.10x

total interest = $28,500

 

So , their sum 

                          0.085 x+ 30,000 - 0.10x = 28,500

                                          - 0.015x = 28500 - 30,000

                                                       = - 1500

                                                     x= -1500/ -0.015

                                                       = $100,000

  First part which is invested at the rate  8.5%  = x = $ 100,000

second part invested at the rate 10% = $ 300,000- $100,000 = $200,000