a company invests n80,000 of its employee pension fund in 4% and 5% bonds and receives n3,360 in interest for the first year. what amount did the company have invested in 5% bonds?
Given information:
A company invests n80,000 of its employee pension fund in 4% and 5% bonds and receives n3,360 in interest for the first year.
Let’s denote the amount invested in 4% bonds as x and the amount invested in 5% bonds as y.
Calculating the total interest earned:
The total interest earned from the investments is n3,360. We can create an equation for the total interest:
0.04x + 0.05y = 3,360
Total investment amount:
The total investment amount is n80,000, so we have:
x + y = 80,000
Solving the equations:
We will use the two equations to find the amount invested in 5% bonds. Let’s solve the system of equations.
- x + y = 80,000
- 0.04x + 0.05y = 3,360
We can rewrite the first equation for x:
x = 80,000 - y
Substitute x in the second equation:
0.04(80,000 - y) + 0.05y = 3,360
3,200 - 0.04y + 0.05y = 3,360
0.01y = 160
y = 16,000
Therefore, the company had n16,000 invested in 5% bonds.