Question

Mr. Unger told his eldest son to invest $100,000 in stocks and bonds a year later the son had earned 4% interest in bonds and a 9% divided on his stocks for a total profit of $5,000 how much did he invest in bonds

Answer 1

The eldest son invested $80,000 in bonds.

Step-by-step explanation:

To solve this problem, we need to set up an equation using the information provided. Let x be the amount of money invested in bonds. The interest earned from the bonds can be calculated as 0.04x. The interest earned from the stocks can be calculated as 0.09(100,000 - x). The sum of these two interest amounts should be equal to $5,000:

0.04x + 0.09(100,000 - x) = 5,000

Simplifying the equation, we get:

0.04x + 9,000 - 0.09x = 5,000

Combining like terms:

-0.05x = -4,000

Dividing both sides by -0.05:

x = 80,000

Therefore, the eldest son invested $80,000 in bonds.