Question

A total of $44,000 is invested in two municipal bonds that pay 5.75% and 7.25% simple interest. The investor wants an annual interest income of $2740 from the investments. What amount should be invested in the 5.75% bond?

Answer #1

**As given in the question,**

total amount invested by investor in municipal bonds = $44,000

let x dollars invested by investor in 5.75% bonds.

this implies,

income from $x interest + income from ($44,000 - $x) interest = $2740

**(5.75*x)/100 + 7.25*(44000 - x)/100 = 2740**

**5.75*x + 7.25*44000 - 7.25*x = 2740*100**

**-1.5*x = 274000 - 7.25*44000**

**-1.5*x = 274000 - 319000**

**-1.5*x = - 45000**

**1.5*x = 45000**

**x = 45000/1.5**

**x = 30000**

So, investor invest $30,000 for 5.75% simple interest in municipal bond.

**Please upvote
if it helps. Also feel free to comment below if you have any
query.**

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