Problema Solution
suppose that you receive an unexpected inheritance of $22,400. you have decided to invest the money by placing some of the money in stocks and some in bonds. to diversify, you decide that three times the amount in bonds should equal five times the amount invested in stocks. how much should be invested in stocks? how much should be invested in bonds?
Answer provided by our tutors
let
s = the money invested in stocks
b = the money invested in bonds
suppose that you receive an unexpected inheritance of $22,400:
s + b = 22400
you decide that three times the amount in bonds should equal five times the amount invested in stocks:
3b = 5s
by solving the system of equations:
s + b = 22400
3b = 5s
we find:
s = $8,400
b = $14,000
click here to see the step by step solution of the system of equations:
$8,400 should be invested in stocks and $14,000 should be invested in bonds.