Question

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?

Answer 1

We know that

• The total amount of money invested is $20,000.

,

• The stocks returned 6%.

,

• The bonds returned 8%.

,

• Bonds return $80 less than Stocks return.

Let's called x stocks and 20,000 - x bonds.

Using the given information, we can define the following equation.-

`0.08(20,000-x)=0.06x-80`

Now, we solve for x.

`\begin{gathered} 1,600-0.08x=0.06x-80 \\ 1,600+80=0.06x+0.08x \\ 0.14x=1,680 \\ x=(1,680)/(0.14) \\ x=12,000 \end{gathered}`

Stocks' investment was $12,000.

Bond's investment was $8,000. (the difference).