Answer:
The correct answer is $50,000.
Explanation:
According to the scenario, the given data are as follows:
Amount = $70,000
Invested at rate = 11%
Tax free investment = 10%
Total income from investments = $7,500
So , we can calculate the invested at 11% by using following formula:
Let the amount invested at 11% = X
So,
= 11% × X + (70,000 - X) × 10% = $7,500
= 0.11 × X + (70,000 - X) × 0.1 = $7,500
= 0.11X + 7,000 - 0.1X = $7,500
= 0.11X -0.1X = $7,500 - $7,000
= 0.01X = $500
X = $500 / 0.01
= $50,000
Hence, the amount invested at 11% is $50,000.
