Problema Solution

Susan purchased municipal bonds yielding 7% annually and certificates of deposit yielding 9% annually. If Susan's investments amounted to $9004 and the annual income is $731.72, how much money is invested in bonds and how much money is invested in certificates of deposit?

Answer provided by our tutors

In bonds: x

In certificates of deposit: y

The equation is

x + y = 9004

7%*x + 9%*y = 731.72

We solve it

x = 3932

y = 5072

In bonds: $3932

In certificates of deposit: $5072