Answer:
the amount invested in municipal bond is $8,000
the amount invested in certificated on deposits = $11,000 - $8,000
= $3,000
Explanation:
Data provided in the question:
Annual yield on municipal bond = 7% = 0.07
Annual yield on certificated of deposits = 9% = 0.09
Initial investment = $11,000
Annual income = $830
Now,
Let the amount invested in municipal bond be 'x'
Therefore,
the amount invested in certificated of deposits = $11,000 - x
Thus,
according to question
⇒ 0.07x + 0.09( $11,000 - x ) = $830
⇒ 0.07x + $990 - 0.09x = $830
⇒ -0.02x = $830 - $990
⇒ -0.02x = -$160
⇒ x = $8,000
Hence,
the amount invested in municipal bond is $8,000
the amount invested in certificated on deposits = $11,000 - $8,000
= $3,000
