Anonymous

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?

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Oddman Profile
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 Profile
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.

Karl Sagan Profile
Karl Sagan answered

I will not talk about mathematics but about the bad example that it gives to investors especially when it talks about small profits for large sums like the one in the example when there are pages like https://www.fxstreetlive.com/ that will associate you with what Avoid these types of actions since it is easier to recover the investment in solid assets.

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