Problema Solution

Marge and Homer have $80,000 to invest. Based upon current market conditions, he has recommended that three times the amount in bonds should equal two times the amount in stocks. How much should be invested in stocks? How much should be invested in bonds?

Answer provided by our tutors

let investment in bond x and stock is y

x+y=80000

and

3x=2y

=> x=2/3 y

2/3y+y=80000

=> y= 80000*3/5=48,000

and x=32,000