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You have $10,000 in a savings account. You want to take most of the money out and invest it in stocks and bonds. You decide to invest nine times as much as you leave in the account. You also decide to invest five times as much in stocks as in bonds. How much will you invest in stocks, how much in bonds, and how much will youleave in savings?

User Ocha
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1 Answer

7 votes

Answer:

7,500 in stocks

1,500 in bonds

1,000 in savings

Step-by-step explanation:

First, let's call x the quantity that you will leave in saving and y the quantity that you will invest in stocks and z the quantity that you will invest in bonds.

Now, we can formulate the following equations:

x + y + z = 10,000

y + z = 9x

y = 5z

Because you have 10,000 in savings, you decide to invest nine times as much as you leave in the account, and you also decide to invest five times as much in stocks as in bonds.

So, we can rewrite the expressions as:

x + y + z = 10,000

-9x + y + z = 0

y - 5z = 0

Now, we can multiply the second equation by -1 and sum this equation with the first one as:

-9x + y + z = 0

(-9x + y + z)*(-1) = 0*(-1)

9x - y - z = 0

Then, the sum is equal to:

x + y + z = 10,000

9x - y - z = 0

10x - 0 - 0 = 10,000

10x = 10,000

x = 10,000/10

x = 1,000

Replacing x on the second equation, we get:

9x - y - z = 0

9*1,000 - y - z = 0

9,000 - y - z = 0

-y - z = - 9,000

Now, we can add the equation with the third one as:

-y - z = - 9,000

y - 5z = 0

0 - 6z = -9,000

-6z = -9000

z = -9000/(-6)

z = 1,500

Finally, using the third equation, the value of y is equal to:

y = 5z

y = 5*1500

y = 7,500

Therefore, you will invest 7,500 in stocks, 1,500 in bonds and you will leave 1,000 in savings.

User RRB
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