Marty Lister Invested $9000 In Stocks And Bonds. The Stocks Paid 5% And The Bonds 8%, Giving An Annual Income Of $525. How Much Did He Invest?

Oddman answered

Your question answers itself. Marty Lister invested $9000.

Perhaps you want to know how much Marty invested in each asset type. We can let b represent the amount in bonds. Then the total interest is given by
  5%(9000-b) + 8%(b) = 525
  3%(b) + 450 = 525    (use the distributive property, collect terms)
  b = 75/.03    (subtract 450, divide by 3%)
  b = 2500

Marty invested $2500 in bonds and $6500 in stocks.

Robert Lamp answered

Perhaps you want to know how much Marty invested in each asset type. We can let b represent the amount in bonds. Then the total interest is given by

5%(9000-b) + 8%(b) = 525

3%(b) + 450 = 525 (use the distributive property, collect terms)

b = 75/.03 (subtract 450, divide by 3%)

b = 2500

Marty invested $2500 in bonds and $6500 in stocks.

Marty Lister Invested $9000 In Stocks And Bonds. The Stocks Paid 5% And The Bonds 8%, Giving An Annual Income Of $525. How Much Did He Invest?

2 Answers

Marty invested $2500 in bonds and $6500 in stocks.

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