A total of $32,000 is invested in two municipal bonds that pay 5.75% and 6.25% simple interest.The investor wants an annual interest income of $1,900 from the investments.What amount should be invested in the 5.75% bond?
A)$31,800
B)$20,000
C)$32,000
D)$20,300
E)$20,100

Question

A total of $32,000 is invested in two municipal bonds that pay 5.75% and 6.25% simple interest.The investor wants an annual interest income of $1,900 from the investments.What amount should be invested in the 5.75% bond? ​
A)$31,800
B)$20,000
C)$32,000
D)$20,300
E)$20,100

Quizplus · Accepted Answer

To find the amount to invest in the 5.75% bond, let x be the amount invested in the 5.75% bond. Then, the amount invested in the 6.25% bond is $32,000 - x. The equation for the total interest is: 0.0575x + 0.0625(32,000 - x) = 1,900. Solving this equation gives x = $20,000.

A Total of $32,000 Is Invested in Two Municipal Bonds