Problema Solution
Helen has $20,000 to invest. Stocks are expected to pay 6% and bonds 5%. How much should she invest in each to earn $1140?
Answer provided by our tutors
let x be invested in stocks and y in bonds
so the return is
0.06x + 0.05y = 1140
and total investment
x + y = 20000
we have from second equation y = 20000-x
put this in first we get
0.06x + 0.05(20000-x) = 1140
this gives x = 14000
so we get y = 20000-14000 = 6000
so $14000 are invested in stocks and $6000 in bonds