Problema Solution
John had $30,000 to invest. He invested part of this money in bonds paying 12% annual simple interest and the rest of the money in a savings account giving 4% annual interest. At the end of the year, he received $2,400 as extra income. How much money did John place in each investment?
Answer provided by our tutors
let
b = the money invested in bonds
r = the rest of the money
John had $30,000 to invest
b + r = 30000
At the end of the year, he received $2,400 as extra income
the income from the bonds + the income from the rest of the money = $2,400
(12/100)b + (4/100)r = 2400
0.12b + 0.04r = 2400
by solving the system of equations
b + r = 30000
0.12b + 0.04r = 2400
we find
b = $15,000
r = $15,000
click here to see the step by step solution of the system of equations
John invested $15,000 in bonds and $15,000 in a saving account.