Question
" A total of $32000 is invested in two municipal bonds that pay 5.75% and 6.25% simiple interest. The investor wants an annual interest income of $1900 from the investments. What amount should be invested in the 5.75% bond?"
Answers
MathMate
$1900/$32000=5.9375%
Amount invested in 5.75% bond
=$32000*(6.25-5.9375)/(6.25-5.75)
=$20,000
Amount invested in 5.75% bond
=$32000*(6.25-5.9375)/(6.25-5.75)
=$20,000