Investment Problem Using Matrix

Question

A trust fund of ₹30000 is invested in two bonds: 5% and 7%. Find the investment in each bond if total annual interest is: (i) ₹1800 (ii) ₹2000


Solution

Step 1: Let Variables

\[ x = \text{amount at 5%}, \quad y = \text{amount at 7%} \]

Step 2: Form Equations

\[ x + y = 30000 \] \[ 0.05x + 0.07y = I \]

(i) When Interest = ₹1800

\[ 0.05x + 0.07y = 1800 \] Multiply by 100: \[ 5x + 7y = 180000 \]

Matrix Form

\[ \begin{bmatrix} 1 & 1 \\ 5 & 7 \end{bmatrix} \begin{bmatrix} x \\ y \end{bmatrix} = \begin{bmatrix} 30000 \\ 180000 \end{bmatrix} \]

Solution

\[ y = 15000,\quad x = 15000 \]

Answer

₹15000 at 5% and ₹15000 at 7%

(ii) When Interest = ₹2000

\[ 0.05x + 0.07y = 2000 \] Multiply by 100: \[ 5x + 7y = 200000 \]

Matrix Form

\[ \begin{bmatrix} 1 & 1 \\ 5 & 7 \end{bmatrix} \begin{bmatrix} x \\ y \end{bmatrix} = \begin{bmatrix} 30000 \\ 200000 \end{bmatrix} \]

Solution

\[ y = 25000,\quad x = 5000 \]

Answer

₹5000 at 5% and ₹25000 at 7%

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