Problema Solution
To provide for retirement income, Teresa Puelo purchases a $5,000 bond that earns 7% annual simple interest. How much money does Teresa have invested in bonds that earn 9% annual simple interest if the total annual interest earned from the two investments is $620?
Answer provided by our tutors
let
x = the money Teresa have invested in bonds that earn 9% annual simple interest
the total annual interest earned from the two investments is $620
7% interest of $5,000 + 9% interest of x = 620
0.07*5000 + 0.09*x = 620
by solving the equation we find
x = $3000
Teresa has invested $3000 in bonds that earn 9% annual simple interest.