Problema Solution
Shari invested $4000 in stocks and bonds. Over the course of the investment, the stocks earned an 18% return and the bonds earned 12%. If the total return on the investment was $624, how much was invested in each?
Answer provided by our tutors
let 'x' represent the amount invested at 18%, then '4000-x' represents the amount invested at 12%
interest = principal * rate * time
we assume time is equal to 1
624 = 0.18x + 0.12(4000-x)
solving for 'x' we have x=2400
4000-2400 = 1600
Shari invested $2,400 in stocks earning an 18% return and $1,600 in bonds earning a 12% return