Dr invested $5000. Part was invested in bonds at a rate of 6% and the rest was invested in a money market at a rate of 7.5%. If the annual interest is $337.50, how much did she invest in bonds ?

Question

5,000 ; $6 ; $11

Answer 1

Let B=amount invested in bonds, so the investment in money market is 5000-B.

Interest from bonds is 0.06B and in money market is 0.075(5000-B).

Total interest=337.50=0.06B+0.075(5000-B)=375+0.06B-0.075B=375-0.015B.

Therefore 0.015B=375-337.50=37.50, and B=37.50/0.015=37500/15=2500.

$2500 was invested in bonds.

CHECK: 2500@6%+2500@7.5%=150+187.50=$337.50.

If the list given is the choice of answers, then it doesn’t make sense!