Solve the problem.

-A writer received $39,000 as royalty for her book. She invested part of the money in bonds paying 6% interest annually. The rest she invested in a life insurance policy paying 12% interest annually.
If the total interest from the investments after 1 year is $4080, how much did she invest in bonds?
A) $30,000
B) $10,000
C) $11,000
D) $29,000

Question

Solve the problem.

-A writer received $39,000 as royalty for her book. She invested part of the money in bonds paying 6% interest annually. The rest she invested in a life insurance policy paying 12% interest annually.
If the total interest from the investments after 1 year is $4080, how much did she invest in bonds?
A) $30,000
B) $10,000
C) $11,000
D) $29,000

Quizplus · Accepted Answer

Let x be the amount invested in bonds, then 39000-x is the amount invested in the life insurance policy.
The interest earned on the bonds is 0.06x and the interest earned on the life insurance policy is 0.12(39000-x).
The total interest earned after 1 year is given as $4080.
So, we have the equation: 0.06x + 0.12(39000-x) = 4080
Simplifying and solving for x, we get:
0.06x + 4680 - 0.12x = 4080
-0.06x = -600
x = 10000
Therefore, the writer invested $10,000 in bonds.

Solve the Problem. -A Writer Received $39,000 as Royalty for Her Book. She