SOLUTION: Mr Jones invests money in stocks that earns a 6% return and bonds that earn a 8% return. He invests three times as much money in stocks as bonds. If he earns $900 annual interest,

Question 257840: Mr Jones invests money in stocks that earns a 6% return and bonds that earn a 8% return. He invests three times as much money in stocks as bonds. If he earns $900 annual interest, what is the total amount of money invested?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Mr Jones invests money in stocks that earns a 6% return and bonds that earn a 8% return. He invests three times as much money in stocks as bonds. If he earns $900 annual interest, what is the total amount of money invested?
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Equations:
s = 3b
0.06s + 0.08b = 900
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Substitute for "s" and solve for "b":
0.06*3b + 0.08b = 900
0.18b + 0.08b = 900
0.26b = 900
b = $3461.54 (amount invested in bonds)
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s = 3b = $10384.62 (amount invested in stocks)
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Cheers,
Stan H.
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