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Not homework. Studying for test. I have the answer just get lost getting there.

Suppose $20,000 was invested, part in a stock expected to pay 7.5% interst over 2 years and the balance in bonds paying 5.4% interest for 2 years. If the total interest earned in 2 years was $1227, how much was invested in each stock.

Answer is supposed to be
Stock: 7000 Bond: 13000

2007-02-01 16:47:37 · 2 answers · asked by Brandi D 2 in Education & Reference Homework Help

2 answers

LET X = AMOUNT INVEST AT 7.5%
LET Y = AMOUNT INVESTED AT 5.4%
SO X + Y = 20000
AND 2(.075)(X) + 2(.054)(Y) = 1227 WHICH BECOMES
.15X + .108Y = 1227
BY SUBSTITUTION .15X + .108(20000-X) = 1227
SOLVING FOR X = 7000 AND Y= 13000

2007-02-02 16:12:25 · answer #1 · answered by MATHMANRET 2 · 0 0

Simple or compound intrest..?

Assume x is invested in bonds...and therefore 20000-x is invested in stocks.

For simple intrest, Interest = P N R /100

For compund Intrest .Interest= P{(1+R)^N}

2007-02-02 07:30:07 · answer #2 · answered by Josh 3 · 0 0

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