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Algebra word problem working with stocks and bonds?

Algebra word problem working with stocks and bonds?

Postby carel72 » Sat May 04, 2013 2:36 pm

Please help with how to get this and the answer.

1) You invested $10,600.00 in stocks and bonds, paying 5.6% and 8.1%, respectively. If the total interest earned for the year was $683.00, how much was invested in stocks and how much was invested in bonds?
stocks

2)Things did not go quite as planned. You invested $10,750.00, part of it in stock that paid 10% annual interest. However, the rest of the money suffered a 5.3% loss. If the total annual income from both investments was $865.00, how much was invested at each rate?
carel72
 
Posts: 44
Joined: Thu Oct 04, 2012 2:40 am

Algebra word problem working with stocks and bonds?

Postby bemelle38 » Sat May 04, 2013 2:51 pm

Please help with how to get this and the answer.

1) You invested $10,600.00 in stocks and bonds, paying 5.6% and 8.1%, respectively. If the total interest earned for the year was $683.00, how much was invested in stocks and how much was invested in bonds?
stocks

2)Things did not go quite as planned. You invested $10,750.00, part of it in stock that paid 10% annual interest. However, the rest of the money suffered a 5.3% loss. If the total annual income from both investments was $865.00, how much was invested at each rate?
Let the amount invested at 8.1% be $ X

Then the amount invested at 5.6% will be ( 10,600 - X ) $

Interest earned = 0.081X + 0.056 ( 10600 - X ) = 683

0.081X + 593.60 - 0.056X = 683

0.025X = 89.40

X = 3576

ANSWER $3576 AT 8.1% AND $7024 AT 5.6%

CHECK

3576 X 8.1/100 = 289.66
7024 X 5.6 /100 = 393.34

ADD = $683

2) 0.10X - 0.053 ( 10750 - X ) = 865

0.10X - 569.75 + 0.053X = 865

0.153X = 1434.75

X = 9377.45

answer $ 9377.45 in stock $1372.55 at 5.3% (loss)


CHECK

9377.45 X 10/100 = 937.75

1372.55 X 5.3/100 = 72.75

SUBTRACT

$865
bemelle38
 
Posts: 173
Joined: Mon Jun 25, 2012 11:47 pm

Algebra word problem working with stocks and bonds?

Postby ciaran » Sat May 04, 2013 2:55 pm

0.056X+0.081(10600-X)=683
0.056X+858.6-0.081X =683
0.025X=175.6
X = 7,024 at 5.6%, 3,576 at 8.1%
you can do the other
ciaran
 
Posts: 143
Joined: Mon Jun 25, 2012 11:55 pm


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