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

2 answers

1. 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 = ____

   Answer ID
   523844

   Created
   April 1, 2011 11:10am UTC

   Rating
   1

   URL
   https://questions.llc/answers/523844

2. M=2,500
   C=4,500

   Answer ID
   762808

   Created
   August 30, 2012 3:27pm UTC

   Rating
   -1

   URL
   https://questions.llc/answers/762808