Problema Solution

Mardi received an inheritance of $70,000. She invested part at 9% and deposited the remainder in tax-free bonds at 7%. Her total annual income from the investments was $6100. Find the amount invested at 9%.

Answer provided by our tutors

Let

x = the amount Mardi invested at 9%

$70,000 - x = the amount invested in the tax-free bonds at 7%

The interest received from the 9% investment is: 0.09x

The interest received from the tax-free bonds is: 0.07(70,000 - x)

The total interest is:

0.09x + 0.07(70,000 - x) = 6100

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click here to see the equation solved for x

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x = $60,000

The amount invested at 9% was $60,000.