Problema Solution
Things did not go quite as planned. You invested
$19,320,
part of it in a stock that paid 12% annual interest. However, the rest of the money suffered a 5% loss. If the total annual income from both investments was
$1788,
how much was invested at each rate?
Answer provided by our tutors
let
x = the money invested at 12% annual interest
y = the part of the money that suffered 5% loss
the total money invested is $19,320:
x + y = 19320
he total annual income from both investments was $1788:
0.12x - 0.05y = 1788
by solving the system of equations:
x + y = 19320
0.12x - 0.05y = 1788
we find:
x = $16,200
y = $3,120
click here to see the step by step solution of the system of equations:
$16,200 were invested at 12% annual interest and $3,120 suffered 5% loss.