Question

Solve the problem. Susan purchased some municipal bonds yielding 7% annually and some certificates of deposit yielding 9% annually. If Susan's investment amounts to $19,000 and the annual income is $1590, how much money is invested in bonds and how much is invested in certificates of deposit? a. $13,500 in bonds; $5500 in certificates of deposit b. $5500 in bonds; $13,500 in certificates of deposit c. $13,000 in bonds; $6000 in certificates of deposit d. $6000 in bonds; $13,000 in certificates of deposit

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Answer 1

The equations would be

Value: b + c = 19000
Interest: 0.07b + 0.09c = 1590

0.07b + 0.09 (19,000 - b) = 1,590
0.07b + 1,710 - .09b = 1,590
120 = .02b

B = 6,000
C = 13,000

So the correct answer is d. $6000 in bonds; $13,000 in certificates of deposit.

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