A retiree receives $5120 a year interest from $40,000 placed in two bonds, one paying 14 percent and the other 12 percent. How much is invested in each bond?

Let x = the amount invested at 14 percent; then (40,000 – x) is the amount invested at 12 percent, and the total annual interest y from the two amounts is given by

And 40,000 – 16,000 = 24,000 at 12%.

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y=.14x+.12(40,000 - x) Substituting y = 5120, 5120 0.14x+4800 0.12x 320 = .02x x16,000 at 14% -