Question

Jessica has half of her investments in stock paying a 7% dividend and the other half in a stock paying 13% interest. If her total annual interest is $780, how much does she have invested?

Answer 1

$7800

Explanation:

The total interest earned can be found by summing the earnings from each of the investments.

Setup

Let x represent the total amount invested. Then Jessica's earnings are ...

(x/2)(0.07) +(x/2)(0.13) = 780

Solution

Simplifying the equation gives ...

(x/2)(0.07 +0.13) = 780

0.10x = 780

x = 7800 . . . . . . . . divide by 0.10

Jessica has $7800 invested.