Exercise 3.2 · Q19
Q.A trust fund has ₹ 30,000 that must be invested in two different types of bonds. The first bond pays 5% interest per year, and the second bond pays 7% interest per year. Using matrix multiplication, determine how to divide ₹ 30,000 among the two types of bonds. If the trust fund must obtain an annual total interest of:
(a) ₹ 1800
(b) ₹ 2000
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Start your 14-day free trial to unlock the full solution →Write the two conditions (total investment and total interest) as a matrix equation and solve using . (a) For ₹1800 interest: ₹15,000 in the 5% bond and ₹15,000 in the 7% bond. (b) For ₹2000 interest: ₹5,000 in the 5% bond and ₹25,000 in the 7% bond.
Setting it up
Let = amount in the first bond (5%) and = amount in the second bond (7%). The two conditions are:
where is the target interest. In matrix form:
Inverting the coefficient matrix
For , .
Here , so
Thus …
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