Monica received an inheritance of $70,000. She invested part at 11% and deposited the remainder in tax-free bonds at 10%. Her total annual income from the investments was $7500. Find the amount invested at 11%.

Question

Nayeli Scott

Business

5 May, 15:03

Monica received an inheritance of $70,000. She invested part at 11% and deposited the remainder in tax-free bonds at 10%. Her total annual income from the investments was $7500. Find the amount invested at 11%.

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Answers (1)

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Ryann Ponce · Answer 1

The correct answer is $50,000.

Explanation:

According to the scenario, the given data are as follows:

Amount = $70,000

Invested at rate = 11%

Tax free investment = 10%

Total income from investments = $7,500

So, we can calculate the invested at 11% by using following formula:

Let the amount invested at 11% = X

So,

= 11% * X + (70,000 - X) * 10% = $7,500

= 0.11 * X + (70,000 - X) * 0.1 = $7,500

= 0.11X + 7,000 - 0.1X = $7,500

= 0.11X - 0.1X = $7,500 - $7,000

= 0.01X = $500

X = $500 / 0.01

= $50,000

Hence, the amount invested at 11% is $50,000.