The amount of interest earned each year is $1,080. How much was invested in each account?

Question

A university alumni association invested part of $16,000 in preferred stock that earns 8% annual simple interest, and the remainder in a municipal bond that earns 6% annual simple interest. The amount of interest earned each year is $1,080. How much was invested in each account?

At 7%

At 9%

Answer 1

x= Amount Invested @6% the amount invested @ 8% is 16,000-x

.06x + .08 (16,000-x) = $1,080

.06 x + 1280- .08 x = 1080

-.02 x = -200 x= -200/-.02 = $10,000 Amount invested @6%

So the rest, $6,000, was invested @ 8%