Solve the word problem (pls. use the recommended format: given, req’d, solution,checking)

Martin Fernandez put part of his money into a bank and...

(continued...)

invested another half of it in bonds. The bank pays 5% interest. The bonds pay a 7% return. How much money did he invest in each vehicle, if his annual income from the bonds was P600 more than the interest from the bank?

### 1 Answer | Add Yours

Let P be the orignal amount Martin had.

**Given**: Bank Bond

Income 5% 7%

Amount $P/2 $P/2

invested

Income $x $ x+600

received

**Equations**:Interest (income)=rate x principal

Bank `5/100*P/2=x=>[5P]/200=x`

Bonds `7/100*P/2=x+600=>[7P]/200=x+600`

Let solve the system by substitution

`[7P]/200=[5P]/200+600=>` Subtract 5p/200 from both sides

`[2P]/200=600=>P/100=600=>P=60,000`

**Answer**: He invested $30,000 in each.

**Check**: Bank `5/100*30,000=1500`

Bond `7/100*30,000=2100`

1500+**600**=2100 correct.

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