Shawn invested one half of his savings in a bond that paid simple interest for 2 years and received $400 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?  Choices:
A) 3000
B) 5000
C) 2000
D) 4000
E) 6000
So, we know that Shawn received 20% of the amount he invested in a year. We also know that in one year Shawn received $200, thus 0.2x = $200 --&gt; x = $1,000.   Since, he invested equal sums in his 2 bonds, then his total savings before investing was 2*$1,000 = $2,000.   Answer:2000
<result>C</result>
Shawn invested one half of his savings in a bond that paid simple interest for 2 years and received $400 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?