Posted by **Gman** on Friday, April 1, 2011 at 4:28am.

Ernest receives $555 per year from his $7000 investment in municipal and corporate bonds. His municipal bonds pay 6% and his corporate bonds pay 9%. How much money is invested in each type of bond

- Algebra -
**drwls**, Friday, April 1, 2011 at 7:10am
Solve these two equations for M and C, the amounts invested in munis and corporates, respectivly.

M + C = 7000

0.06M + 0.09 C = 555

Using substitution,

0.06M + 0.09*(7000 - M) = 555.

Rearranging the last equation,

0.03 M = 630 - 555 = 75

M = 75/0.03 = _____

C = 7000 - M = ____

- Algebra -
**Gabby**, Thursday, August 30, 2012 at 11:27am
M=2,500

C=4,500

## Answer this Question

## Related Questions

math - linear programming - A woman wishes to invest $12,000 in three of bonds: ...

Algebra - A woman wishes to invest $12,500 in three types of bonds: municipal ...

math - ted has $20,000 invested in mutual bonds from the city of L A.these bonds...

Math - An inheritance of $40,000 is invested in two municipal bonds which pay 6...

Math - You would like to invest in $12,000 in two different bonds. Some of the ...

Finance - Corporate bonds issued by Johnson Corporation currently yield 11.5%. ...

Finance 105 - Corporate bonds issued by Johnson Corporation currently yield 9.5...

accounting - if i invest in municipal bonds that earn 5% interset or in taxable ...

Economics - If 10-year T-bonds have a yield of 5.2%, 10-year corporate bonds ...

algebra - Helen has 1/5 of her prorfolio in U.S. stocks, 1/8 of her porfolio in ...