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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] New post 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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Answer D [#permalink] New post 25 Oct 2006, 08:35
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
Answer D   [#permalink] 25 Oct 2006, 08:35
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