Answer:
Principal Invested in Municipal Bonds is $16,000
Principal Invested in Corporate Bonds is $15,000
Step-by-step explanation:
If;
Principal Invested in municipal bonds = a
Principal Invested in corporate bonds = b
then we have;
a + b = $31,000
--------------------------------Equation 1
0.075a + 0.085b = $2,475 ---------------Equation 2
From equation 1 we have;
a = 31,000 - b
By putting the values of a in Equation 2 we get;
0.075 (31,000 - b) + 0.085b = 2,475
2,325 - 0.075b + 0.085b = 2,475
0.01b = 150
b = $15,000
By putting the values of b in equation 1 we get;
a = $16,000
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