Problema Solution
A certain finance firm promises his client a return of Php 10,250 amount of interest on his Php 250,000 worth of investments. suppose the firm invests part of his money in bonds at 5% interest in an annual basis and the remainder at 4% interest rate for stocks. how much amount should the firm invests in bonds and in stocks to keep their promise?
Answer provided by our tutors
Let
x = the money invested in bonds at 5% interest
y = the money invested in stocks at 4% interest
x + y = 250000
0.05x + 0.04y = 10250
........
click here to see the system of equations solved for x and y
........
x = $25,000
y = $225,000
The firm should invest $25,000 in bonds and $225,000 in stocks.