SOLUTION: A prudent investor wants to invest $14000, some in stocks earning 12% annually and the rest in bonds earning 4% annually. How much should be invested in each type of investment to

Question 1049466: A prudent investor wants to invest $14000, some in stocks earning 12% annually and the rest in bonds earning 4% annually. How much should be invested in each type of investment to get a return of $1360 annually?
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
Some in stocks at 12%: 0.12x
The rest in bonds at 4%: 0.04(14000-x) Note: Minus x, since x is invested at 12%
:
Put it together:
0.12x+0.04(14000-x) = 1360
0.12x+560-0.04x = 1360
0.08x = 800
x = 10,000 this is the amount invested at 12%
14,000-10,000 = 4,000 is invested in bonds at 4%
>>>>>>>>>>>>>>>>>>
Check:
10,000*0.12 = 1,200
4,000*0.04 . = 160
. . . . . . . -----------
Total . . . . 1,360 Correct
:
John
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