Problema Solution
Marty Lister invested $9000 in stocks and bonds. The stocks paid 5% and the bonds 8%, giving an annual income of $525. How much did he invest in bonds?
Answer provided by our tutors
Your question answers itself. Marty Lister invested $9000.
Perhaps you want to know how much Marty invested in each asset type. We can let b represent the amount in bonds. Then the total interest is given by
5%(9000-b) + 8%(b) = 525
3%(b) + 450 = 525 (use the distributive property, collect terms)
b = 75/.03 (subtract 450, divide by 3%)
b = 2500
Marty invested $2500 in bonds and $6500 in stocks.