Invested $4000 more in bonds paying 12% annual int.than she did in stocks paying dividends of 5% per year. Her total annual income from these investments is...

Question

Emma invested $4000 more in bonds paying 12% annual interest than she did in stocks paying dividends of 5% per year. her total annual income from these investments is $814.90. How much did she invest in bonds?

*Using two equations in two variables.

Answer 1

Invested in stock= x

 

Invested in bond = y

 

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Forming equations

 

Invested $4000 more in bonds paying 12% annual int.than she did in stocks paying dividends of 5% per year.

 

y= x + 4000

 

Earning from5% dividend  stock  investment = x* 5%= 0.05x

 

Earning from12 % bond investment = y* 12%= 0.12y

 

Total  earning

 

0.05x + 0.12 y = 814.90

 

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equations

 

y= x + 4000

 

0.05x + 0.12 y = 814.90

 

By solving equations by substitution( or any known method)

 

x= 1970

 

y=5970

 

 

Invested in stock= x = $1970

Invested in bond = y =$5970