Question

A total of ​$24,000 is to be invested in stocks and bonds. If the amount invested in bonds is three times that invested in​ stocks, how much is invested in each​ category?

Answer 1

• bonds: $18,000
• stocks: $6,000

Explanation:

You have a total of $24,000 invested in stocks and bonds in the ratio 1 : 3. You want to know the amount invested in each category.

Ratio

Recognizing that the total number of ratio units is 1+3 = 4, and that total represents $24,000, we see that each ratio unit represents $24,000/4 = $6,000.

Multiplying the ratio by $6,000, we see the investment amounts are ...

stocks : bonds = 1 : 3 = $6,000 : $18,000

$6,000 is invested in stocks; $18,000 is invested in bonds.