Problema Solution

Mardi received an inheritance of $70,000. She invested part at 7% and deposited the remainder in tax-free bonds at 12%. Her total annual income from the investments was $5900. Find the amount invested at 7%.

Answer provided by our tutors

I=PRT

5,900=.12X+.07(70,000-X)1

5,900=.12X+4,900-.07X

5,900-4,900=.12X-.07X

1,000=.05X

X=1,000/.05

X=20,000 AMOUNT INVESTED @ 12%.

70,000-20,000=50,000 AMOUNT INVESTED @ 7%.

PROOF:

5,900=.12*20,000+.07*50,000

5,900=2,400+3,500

5,900=5,900