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Shawn invested one half of his savings in a bond that paid

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Shawn invested one half of his savings in a bond that paid [#permalink]  25 Oct 2006, 08:22
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Shawn invested one half of his savings in a bond that paid simple interest for 2 years and received \$ 550 as interest. He invested the remaining in a bond that paid compound interest, interest being compounded annually, for the same 2 years at the same rate of interest and received \$605 as interest. What was the value of his total savings before investing in these two bonds?

A. \$5500
B. \$11000
C. \$22000
D. \$2750
E. \$44000
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CI means SI for 1st year + SI for 2nd Year + SI on (SI for 2nd year)

SI for 1st year = 550/2=275

275+275+SI on (275)=605==> SI on 275=55==>
SI on 275 = 275*R*1/100=55
R=20%

Now using SI for 2 years on T/2 of the money

(T/2)*20*2/100=550
T=550*5= 2750
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