Problema Solution
Leticia has been tracking 2 volatile stocks. Stock A increased to 10% and stock B increased to 14%. Using the simple interest model, she has 10000 to invest but wants 11300 after one year. How much should she invest at 10% and how much at 14%?
Answer provided by our tutors
x + y = 10,000
1.1x + 1.14y = 11,300
1.1x + 1.1y = 11,000
0.04y = 300
y = 7500
x = 10,000 - 7,500 = 2,500