Mrs.Chandler invested $75,000. Some was invested in bonds that earned a 5% profit, and the rest was put into stocks that earned 8% profit. How much did-

Question

Mrs. Chandler invest in bonds if her total profit on both types of investments was $4,380?  Translate the word problem into an equation then solve. Please Help!!

Answer 1

A total of $75,000 was invested into two bodies: stocks(s) and bonds(b).

This gives us: b + s = 75,000.

 

The bonds earned a 5% profit, and the stocks earned an 8% profit, with the total profit being $4380.

This gives us: .05b + .08s = 4380.

 

Now we have two equations and two unknowns! We can solve using a system of linear equations:

   b   +   s = 75,000

.05b + .08s = 4380

 

We're looking for the amount she invested in bonds, so we will solve for b by eliminating s:

 .08b + .08s = 6000

-.05b - .08s = -4380

 

.03b = 1620

 

b ≅ $54,000

 

I hope this helps!

Answer 2

How long was the investment active?

Invest $x at 5% and $(75000-x) at 8%
The interst earned is the sum of the
amount earned at each interest rate.

I = prt
Assuming the time was 1 year:

4380 = .05x + .08(75000 - x)
4380 = .05x + 6000 - .08x
4380 - 6000 = -.03x

Solving for x will give the amount invested
at 5%
75000 - x will give the amount invested at 8%