Problema Solution
You invested $11,400.00 in stocks and bonds, paying 5.6% and 8.1%, respectively. If the total interest earned for the year was $745.00, how much was invested in stocks and how much was invested in bonds?
Answer provided by our tutors
let 'x' represent the amount invested at 5.6%, then '11400-x' represents the amount invested at 8.1%
interest = principal * rate * time
we take time to be equal to 1
745 = 0.056x + 0.081(11400-x)
solving for 'x' we have x=7136
11400-7136 = 4264
$7,136 was invested at 5.6%, $4,264 was invested at 8.1%