Question

An inheritance of $40,000 is invested in two municipal bonds which pay 6% and 7% simple annual interest. If the annual interest from both bonds is $2,550 how much is invested at each rate?

Answer 1

Let x be the amount invested in 6% bonds, so 40000-x is the amount in 7%.
x*0.06+(40000-x)*0.07=2550
Solve for x.

Answer 2

25,000 @ 6%
15,000 @ 7%