How much was invested in each?

Question

Simon invested $10,000 in stocks and bonds. He earned 6% interest on the stocks and 8% interest on the bonds. The total interest earned on the bonds was $40 less than the interest earned on the stocks. How much was invested in each?

Answer 1

Let x = amount invested in stocks

10000 - x = amount invested in bonds

 

Interest on bonds = (Interest on stocks) - 40

 

So, 0.08(10000 - x) = 0.06x - 40

      800 - 0.08x = 0.06x - 40

                  800 = 0.14x - 40

                  840 = 0.14x

                  6000 = x

 

Answer: INVEST $6000 IN STOCKS AND $4000 IN BONDS.