A trust invested some money in two type of bonds. The first bond pays 10% interest and second bond pays 12% interest. The trust received ₹ 2800 as interest. However, if trust had interchanged money in bonds, they would have got ₹ 100 less as interest. Using matrix method, find the amount invested by the trust.
AnswerLet Rs. x be invested in the first bond and Rs. y be invested in the second bond.
Let A be the investment matrix and B be the interest per rupee matrix. Then,
$\text{A}=\begin{bmatrix}\text{x}&\text{y}\end{bmatrix}\text{ and }\text{B}=\begin{bmatrix}\frac{10}{100}\\\frac{12}{100}\end{bmatrix}$
Total annual interest $=\text{AB}=\begin{bmatrix}\text{x}&\text{y}\end{bmatrix}\begin{bmatrix}\frac{10}{100}\\\frac{12}{100}\end{bmatrix}=\frac{10\text{x}}{100}+\frac{12\text{y}}{100}$
$\therefore\ \frac{10\text{x}}{100}+\frac{12\text{y}}{100}=2800$
$\Rightarrow10\text{x}+12\text{y}=280000\ ...(1)$
If the rates of interest had been interchanged, then the total interest earned is Rs. 100 less than the previous interest.
$\therefore\ \frac{12\text{x}}{100}+\frac{10\text{y}}{100}=2700$
$\Rightarrow12\text{x}+10\text{y}=270000\ ...(2)$
The system of equations (1) and (2) can be expressed as
PX = Q, where $\text{P}=\begin{bmatrix}10&12\\12&10\end{bmatrix},\ \text{X}=\begin{bmatrix}\text{x}\\\text{y}\end{bmatrix},\ \text{ Q}=\begin{bmatrix}280000\\270000\end{bmatrix}$
$\big|\text{P}\big|=\begin{vmatrix}10&12\\12&10\end{vmatrix}=100-144=-44\neq0$
Thus, P is invertible.
$\therefore\ \text{X}=\text{P}^{-1}\text{Q}$
$\Rightarrow\text{X}=\frac{\text{adj }\text{P}}{\big|\text{P}\big|}\text{Q}$
$\Rightarrow\begin{bmatrix}\text{x}\\\text{y}\end{bmatrix}=\frac{1}{(-44)}\begin{bmatrix}10&-12\\-12&10\end{bmatrix}^\text{T}\begin{bmatrix}280000\\270000\end{bmatrix}$
$\Rightarrow\begin{bmatrix}\text{x}\\\text{y}\end{bmatrix}=\frac{1}{(-44)}\begin{bmatrix}10&-12\\-12&10\end{bmatrix}\begin{bmatrix}280000\\270000\end{bmatrix}$
$\Rightarrow\begin{bmatrix}\text{x}\\\text{y}\end{bmatrix}=\begin{bmatrix}\frac{2800000-3240000}{-44}\\\frac{-3360000+2700000}{-44}\end{bmatrix}=\begin{bmatrix}10000\\15000\end{bmatrix}$
$\Rightarrow\text{x}=10000$ and $\text{y}=15000$
Therefore, Rs. 10,000 be invested in the first bond and Rs. 15,000 be invested in the second bond.