Problema Solution
An investor has $10,000 invested in two stocks. If one stock pays 15% and the other pays 16%, and the total annual income is $1520, how much is invested in each.
Answer provided by our tutors
Let
x = the money invested in the first stock that pays 15%
y = the money invested in the second stock that pays 16%
An investor has $10,000 invested in two stocks:
x + y = 10000
15% of x + 16% of y = total income of $1520
0.15*x + 0.16*y = 1520
Lets solve the system of equations
x + y = 10000
0.15*x + 0.16*y = 1520
we find
x = $8000
y = $2000
$8,000 were invested in the first stock and $2,000 in the second stock.