Question

Sam bright a Canada saving bond paying 4% interest and a provincial government bond paying 5% interest. He invested a total of $15,000 and earned $690 in interest in the first year. How much did he pay for each bond? PLEASE ANSWER THIS ASAP

Answer 1

Money invested in Canada saving bond is $6000.

Money invested in provincial government bond is $9000.

Explanation:

First of all, let us have a look at the formula for simple interest:

`SI = (P* R* T)/(100)`

Where P is the amount invested

R is the rate of interest and

T is the time

We are given here, 2 bonds in which a total of $15000 were invested

Let money invested in Canada saving bond
`P_1`, = $x

Rate of interest,
`R_1=4\%`

Time,
`T_1 = 1\ year`

`SI_1 = (P_1* R_1* T_1)/(100)\\\Rightarrow (x* 4* 1)/(100) ..... (1)`

Let money invested in provincial government bond
`P_2`, = $(15000-x)

Rate of interest,
`R_2=5\%`

Time,
`T_2 = 1\ year`

`SI_2 = (P_2* R_2* T_2)/(100)\\\Rightarrow ((15000-x)* 5* 1)/(100) ..... (2)`

We are given that

`SI_1+SI_2=$690\\\text{Using equations (1) and (2):}\\\\\Rightarrow (4x)/(100) + ((15000-x)* 5)/(100) = 690\\\Rightarrow 4x + (75000-5x) = 69000\\\Rightarrow x = \$6000`

Money invested in Canada saving bond = $6000

Money invested in provincial government bond = $15000-$6000 = $9000