Martin purchased municipal bonds that yield 7% annually and certificates of deposit which yield 9% annually.

If Martin's initial investments amount to $11,000 and the annual income is $830, how much money is invested in bonds and how much is invested in certificates of deposit?

the amount invested in municipal bond is $8,000

the amount invested in certificated on deposits = $11,000 - $8,000

= $3,000

Explanation:

Data provided in the question:

Annual yield on municipal bond = 7% = 0.07

Annual yield on certificated of deposits = 9% = 0.09

Initial investment = $11,000

Annual income = $830

Now,

Let the amount invested in municipal bond be 'x'

Therefore,

the amount invested in certificated of deposits = $11,000 - x

Thus,

according to question

⇒ 0.07x + 0.09 ($11,000 - x) = $830

⇒ 0.07x + $990 - 0.09x = $830

⇒ - 0.02x = $830 - $990

⇒ - 0.02x = - $160

⇒ x = $8,000

Hence,

the amount invested in municipal bond is $8,000

the amount invested in certificated on deposits = $11,000 - $8,000

= $3,000