Question

Bradford put some of his $25,000 in savings in a stock mutual fund and the rest in a bond mutual fund. If Bradford earned 9% on the money he put in the stock mutual fund and 6% on the money he put in the bond mutual fund, and his combined earnings were $1,893, how much did he invest in the stock mutual fund?

Answer 1

$13,100

Explanation:

Let x be the amount Bradford invested in the stock mutual fund.

The rest of the money, which is (25,000 - x), was invested in the bond mutual fund.

Bradford earned 9% on the money he invested in the stock mutual fund, which is 0.09x.

Bradford earned 6% on the money he invested in the bond mutual fund, which is 0.06(25,000 - x).

The total earnings were $1,893:

0.09x + 0.06(25,000 - x) = 1,893

Simplifying the equation:

0.09x + 1,500 - 0.06x = 1,893

0.03x = 393

x = 13,100

Therefore, Bradford invested $13,100 in the stock mutual fund.