SOLUTION: Mr. Stein invested a total of $100,000 in two companies for a year. Company A’s stock showed a 13% annual gain, while Company B showed a 3% loss for the year. Mr. Stein made an

Question 1132941: Mr. Stein invested a total of $100,000 in two companies for a year. Company A’s stock showed a 13% annual
gain, while Company B showed a 3% loss for the year. Mr. Stein made an 8% return on his investment over
the year. How much money did he invest in each company?
Answer by ikleyn(52875) (Show Source): You can put this solution on YOUR website!
.

Let x be the amount invested in company A' stock, in dollars.

Then the amount invested in company B' stock is  (100000-x) dollars.


Your basic equation is 


    13% gain - 3% loss         = 8% return,    or


    0.13x    - 0.03*(100000-x) = 0.08*100000.


Simplify step by step and solve for x:


    0.13x - 3000 + 0.03x = 8000,

    0.16x = 8000 + 3000

    0.16x = 11000  ====>  x =  = 68750.


ANSWER.  68750 dollars invested in company A' stock;  the rest,  100000 - 68750 = 31250 dollars invested in company B' stock.


CHECK.   0.13*68750 - 0.03*31250 = 8000 dollars.    ! Correct !

Solved.

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