Question

much did he invest in each stock? 2) Theodore inherited two different stocks whose yearly income was $2100. The total appraised value of the stocks was $40,000 and one was paying 4% and one 6% per year. What was the value of each stock? 3) Yi-fei Wang inherited $20,000 which she invested in stocks and bonds. The stocks returned 6% and the bonds 8%. if the return on the bonds was $80 less than the return on the stocks, how much did she invest in each? Son which she wished to invest She put part in a term bank savings account at 8% and part in a regular savings

Answer 1

Theodore inherited two different stocks whose yearly income was $2100. The total appraised value of the stocks was $40,000 and one was paying 4% and one 6% per year. What was the value of each stock?

so, let the value of stock with 4% = x

And the value of the stock with 6% = y

so,

The yearly income for both = 2100

so, 0.04x + 0.06y = 2100

And, The total appraised value of the stocks was $40,000

so, x + y = 40,000

Solve the system of equations :

0.04 x + 0.06 y = 2100 eq.(1)

x + y = 40,000 eq.(2)

From equation 2: y = 40,000 - x

Substitute with the value of y at the equation (1)

So,

0.04 x + 0.06 ( 40,000 - x ) = 2100

Solve for x

0.04 x + 0.06 * 40,000 - 0.06 x = 2100

combine like terms

0.04 x - 0.06 x = 2100 - 0.06 * 40,000

- 0.02 x = 0