Question

A combined total of $41,000 is invested in two bonds that pay 6% and 7% simple interest. The annual interest is $2,700.00. How much is invested in each bond?

Answer 1

Amount invested at 6% interest = 17,000

Step-by-step explanation

The simple interest on an invested principal (P), at a rate, R, for a period of time, T, is given by

Simple Interest = (PRT/100)

Let the amount invested at 6% be x

Let the amount invested at 7% be y

Sum of these amounts is $41,000

x + y = 41000

Simple Interest on x for 1 year

SI = (x × 6 × 1/100) = 0.06x

Simple interest on y for 1 year

SI = (y × 7 × 1/10) = 0.07y

Sum of annual interest = $2,700

0.06x + 0.07y = 2700

Now, we have a simultaneous equation

x + y = 41000

0.06x + 0.07y = 2700

Solving this simultaneously,

x = 17,000

y = 24,000

Hope this Helps!!!