Answer:
Let the number of $2 notes be x, while that of $10 notes be y.
Set two equations
x + y = 21 y = 21 - x ------- 1
2x + 10y < 110 ------ 2
Sub 1 into 2
2x + 10(21-x) < 110
2x + 210 - 10x < 110
-8x < -100
x > 12.5
Minimum number of $2 notes in the envelope = 13