Problema Solution
You invested $12,000, part of it in a stock that paid 14% annual interest. However, the rest of the money suffered a 6% loss. Express the total annual income from both investments, I, as a function of the amount invested in the 14% stock, x.
Answer provided by our tutors
x = the part of the money invested in the 14% stock
12,000 - x = the rest of the money that suffered a 6% loss
I(x) = 0.14x - 0.06(12,000 - x)
I(x) = 0.2x - 720
click here to see the step by step simplification:
the total annual income from both investments is: I(x) = 0.2x - 720, where x is the amount invested in the 14% stock.