Question

A combined total of $53,000 is invested in two bonds that pay 2% and 8.5% simple interest. The annual interest is $3,335.00. How much is invested in each bond? The amount invested at 2% is $ The amount invested at 8.5% is $

Answer 1

8.5 = $35,000

2% = $18,000

Explanation:

two equations can be derived from the question

x + y = $53,000 equation 1

0.02x + 0.085y = $3,335.00. equation 2

x = amount invested in 2% bond

y = amount invested in 8.5% bond

multiply equation 1 by 0.02

0.02x + 0.02y = 1060 equation 3

subtract equation 2 from 3

0.065y = 2275

y = 35,000

substitute for y in equation 1

53,000 - 35,000 = 18,000