Algebra

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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 -

    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 -

    M=2,500
    C=4,500

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