Colby Inherited a Small Savings-Bond Portfolio Consisting of Four $1,000

question 252

Short Answer

Colby inherited a small savings-bond portfolio consisting of four $1,000 face-value Canada Savings Bonds and six $1,000 face-value Ontario Savings Bonds. In the first year, the portfolio earned $438 interest. At the end of the first year, Colby cashed in one of the Canada Savings Bonds and two of the Ontario Savings Bonds. In the following year, the remaining bonds earned $306 interest. What annual rate of interest did each type of bond earn?