or corporation receives a huge bonus She invests part of the money in bonds that

Question

or corporation receives a huge bonus She invests part of the money in bonds that pay 8% annual interest and the remainder in mutual funds that earn 10% th e first year. The amount she invested in mutual funds was $210,000 more than twice the amount she invested in bonds. She earned $63,200 on her two investments. Let x represent the amount invested in bonds and y the amount invested in mutual funds. Complete parts a through c below. a. Write an equation relating the principals invested in bonds and in mutual funds. Let P = amount invested in bonds amount invested in mutual funds = (answers are case sensitive) b. Complete the table. (Since this is over 1 year, the column for time has been removed.) Categories Bonds Mutual Funds Principal (S) Interest ($) Rate 0.08 0.1 found in part (a) c. Write an equation showing that she earned a total interest of $63,200 on the two investments 63,200

Explanation / Answer

x = amount invested in bonds

y = amount invested in mutual funds

a) P = amount invested in bonds

amount invested in mutual funds = 210000+ 2P

b) interest for bonds = .08P

interest for mutual funds = .10 ( 210000 + 2P ) = 21000 + .2P

c) equation showing total interest earned is

.08x + .10y = 63200

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