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

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