Question

Sam bright a Canada saving bond paying 4% interest and a provincial government bond paying 5% interest. He invested a total of $15,000 and earned $690 in interest in the first year. How much did he pay for each bond? PLEASE ANSWER THIS ASAP

Answer 1

Answer:

Money invested in Canada saving bond is $6000.

Money invested in provincial government bond is $9000.

Step-by-step explanation:

First of all, let us have a look at the formula for simple interest:

$SI = \dfrac{P\times R\times T}{100}$

Where P is the amount invested

R is the rate of interest and

T is the time

We are given here, 2 bonds in which a total of $15000 were invested

Let money invested in Canada saving bond  $P_1$, = $x

Rate of interest, $R_1=4\%$

Time, $T_1 = 1\ year$

$SI_1 = \dfrac{P_1\times R_1\times T_1}{100}\\\Rightarrow \dfrac{x\times 4\times 1}{100} ..... (1)$

Let money invested in provincial government bond $P_2$, = $(15000-x)

Rate of interest, $R_2=5\%$

Time, $T_2 = 1\ year$

$SI_2 = \dfrac{P_2\times R_2\times T_2}{100}\\\Rightarrow \dfrac{(15000-x)\times 5\times 1}{100} ..... (2)$

We are given that

$SI_1+SI_2= 690\\\text{Using equations (1) and (2):}\\\\\Rightarrow \dfrac{4x}{100} + \dfrac{(15000-x)\times 5}{100} = 690\\\Rightarrow 4x + (75000-5x) = 69000\\\Rightarrow x = \ 6000$

Money invested in Canada saving bond = $6000

Money invested in provincial government bond = $15000-$6000 = $9000