Question

Francis invested $20,000. Some was invested in bonds that made a 4% profit, and the rest was put into stocks that made an 8% profit. How much did Francis invest in bonds if his total profit on both types of investments was $1,120?

Answer 1

Answer:he invested $12000 in bonds and $8000 in stocks.

Explanation:

Let x represent the amount that was invested in the bond that made 4% profit.

Let y represent the amount that was invested in the stock that made 8% profit.

Francis invested $20,000. Some was invested in bonds that made a 4% profit, and the rest was put into stocks that made an 8% profit. This means that

x + y = 20000

Profit made from the amount invested in the bond is

4/100 × x = 0.04x

Profit made from the amount invested in stock is

8/100 × y = 0.08y

if his total profit on both types of investments was $1,120, it means that

0.04x + 0.08y = 1120 - - - - - - - - - - 1

Substituting x = 20000 - y, it becomes

0.04(20000 - y) + 0.08y = 1120

800 - 0.04y + 0.08y = 1120

- 0.04y + 0.08y = 1120 - 800

0.04y = 320

y = 320/0.04 = 8000

x = 20000 - y = 20000 - 8000

x = $12000