Question

A total of $32,000 is invested in two municipal bonds that pay 4.25% and 6.25% simple interest. The investor wants an annual interest income of $1680 from the investments. What amount should be invested in the 4.25% bond?

Answer 1

Answer:

$16000 invested in 4.25%  and 16000 invested in 6.25%

Step-by-step explanation:

Let x be the amount invested in 4.25%  and y be the amount invested in 6.25%

4.25%= 0.0425

6.25%= 0.0625

$x+y= 32000$

subtract x from both sides

$y= 32000-x$

total interest earned is 1680

$0.0425x+0.0625y=1680$

$0.0425x+0.0625(32000-x)=1680$

Now solve for x  and y

$0.0425x+2000-0.0625x=1680$

subtract 2000 from both sides

$-0.02x=1680-2000$

$-0.02x=-320$

divide by -0.02 from both sides

x=16000

$y= 32000-x$

$y= 32000-16000=16000$