Kelly Fisher invested a total of $20,000 in two municipal bonds that have yields of 7% and 10% interest per year, respectively. If the interest Kelly receives from the bonds in a year is $1580, how much did she invest in each bond? (Let x and y denote the amount, in dollars, invested at 7% and 10%, respectively.)

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Business

Elliot

13 July, 03:21

Kelly Fisher invested a total of $20,000 in two municipal bonds that have yields of 7% and 10% interest per year, respectively. If the interest Kelly receives from the bonds in a year is $1580, how much did she invest in each bond? (Let x and y denote the amount, in dollars, invested at 7% and 10%, respectively.)

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Adalynn Acosta · Answer 1

Kelly invested $14,000 in bond - 1 and $6000 in bond-2.

Explanation:

Let the x amount be invested in bond and y amount in other bond.

total amount invested = $,20,000

x + y = $20,000 ... [1]

Interest rate on bond-1 = 7%

Amount of interest received from bond - 1 = 0.07x

Interest rate on bond-2 = 10%

Amount of interest received from bond - 2 = 0.1y

Total interest received = $1580

0.07x + 0.1y = $1580 ... [2]

Solving [1] and [2], we get:

y = $6,000

x = $14,000

Kelly invested $14,000 in bond - 1 and $6000 in bond-2.