Question

A scholarship fund raised $7,000 in contributions. Part of the contributions were invested in bonds paying 6% interest, and the rest were invested in bank certificates paying 8.5% interest. If the total annual income is $520, create a system to model the scenario. Then find the amount invested in the 8.5% account.

Answer 1

To find the amount invested in the 8.5% account, we can set up an equation based on the total annual income and solve for x. After solving the equation, we find that the amount invested in the 8.5% account is $4000.

Step-by-step explanation:

To model the scenario, let's assume that the amount invested in bonds paying 6% interest is x dollars. The amount invested in bank certificates paying 8.5% interest is then $7000 - x dollars. The total annual income is the sum of the interest earned from the bonds and the interest earned from the bank certificates. We can set up the following equation to represent this:

0.06x + 0.085($7000 - x) = $520

To find the amount invested in the 8.5% account, we need to solve this equation:

0.06x + 0.085($7000 - x) = $520

0.06x + $595 - 0.085x = $520

-0.025x = -$75

x = $75 / 0.025

x = $3000

Therefore, the amount invested in the 8.5% account is $7000 - $3000 = $4000.