Interest Rate Word Problem  TOPIC_SOLVED

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Interest Rate Word Problem

Postby mysticxhobo on Mon Jan 02, 2012 9:00 pm

Part of a sum of $5400 is invested in 8% bonds and the remainder in 6.5% tax-free bonds. The combined annual interest from these bonds is $375. How much money is invested in 8% bonds?

the solution in the back of the book is 1600.00.

but i really need to understand the process of solving. any help will be much appreciated. thank you.
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Re: Interest Rate Word Problem  TOPIC_SOLVED

Postby mysticxhobo on Mon Jan 02, 2012 10:05 pm

I've figured out the problem after completing some quick research on the subject. in my opinion the simplest solution to the problem is not using a chart and just attempting to translate the words directly into an equation.

(5400-x)(.065) + (.08)x = 375

the wording in this problem is very confusing but if you solve that equation for x you will get 1600. inserting 1600 back into the equation will yield the true statement 375 = 375. :wave:
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