Better Students Ask More Questions.
On January 1, 1981, Nick wins $150,000 in the lottery and he invests the entire amount...
1 Answer | add yours
The simple interest formula is I = Prt, where P is the principal (amount invested), r is the interest rate expressed as a decimal and t time in years. In this problem time is t = 1 year.
If Nick invested $x in stock X, his interested earned from this stock is `I_x = 0.14x`
If Nick invested $yin stock Y, his interested earned from this stock is `I_y=0.29y`
The total amount invested is x + y = 150,000 and the total interest earned is `I_x+I_y = 0.14x+0.29y = 30,000`
This is a system of equations with two variables. It can be solved by elimination.
Multiply the first equation by 0.14:
0.14x + 0.14y = 0.14*150,000=21,000
0.14x +0.29y = 30,000
Subtracting first equation from the second, get
0.15y = 9,000
`y=9,000/0.15 =60,000 `
Then x = 150,000 - 60,000 = 90,000.
The amount invested in stock X is $90,000 and the amount invested in stock Y is 60,000.
Posted by ishpiro on July 11, 2013 at 3:01 AM (Answer #1)
Join to answer this question
Join a community of thousands of dedicated teachers and students.