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A combined total of $68,000 is invested in two bonds that pay 1% and 7% simple interest. The annual interest is $3,260.00. How much is invested in each bond?

User Stravid
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1 Answer

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Step-by-step explanation

Assuming that x represents the amount invested at 1% and 68,000-x represent the amount invested at 7%,

The total interest will be given by the following expression:

0.07x + 0.01(68,000-x)= 3,260

Applying the distributive property:

0,07x + 680 -0.01x = 3,260

Subtracting -680 to both sides:

0.07x - 0.01x = 3,260 - 680

Subtracting terms:

0.06x = 2,580

Dividing both sides by -0.06:

x = 2,580/0.06

Simplifying:

x= 43,000

Subtracting 43,000 to 68,000:

68,000-43,000 = 25000

In conclusion, there was invested $25,000 at 1% and $43,000 at 7%

User Dmitriy Selivanov
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