Question

Gary won $70,000 in the lottery after all tax deductions. He invested part of the money at 11% and deposited the remainder in tax-free bonds at 12%. His total annual income from the investments was $7900. Find the amount invested at 11%. Find the amount invested at 12%.

Answer 1

X - invested for the money at 11%
70 000 - x - deposited at 12%

0.11x + 0.12(70000-x)=7900
0.11x + 8400 - 0.12x = 7900
8400- 7900 = 0.01x
500 = 0.01x
x=50 000 invested at 11%
rest (20K) invested at 12%