document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1201493>Question 1201493</A>: <I><SPAN STYLE=\"word-break: break-all;\"> an investment manager bought a bond of a pharmaceutical company for 5000. The bond yield 4% per year. The manager now wants to buy shares of stock in telecommunication company. The stock sells at $20 perper share and earn a dividend of 0,50 per share per year. How many share should the manager buy so that its yield from the total investment in stocks and bonds higher than 3% per year ? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #835880 by </B><A HREF=/tutors/aboutme.mpl?userid=mananth><B>mananth(16946)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=mananth><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=mananth><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=835880\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\">  a bond of a pharmaceutical company for 5000.\r<BR>\n" );
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document.write( "The bond yield 4% per year<BR>\n" );
document.write( "Dividend  = 200\r<BR>\n" );
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document.write( ". The stock sells at $20 per share<BR>\n" );
document.write( " and earn a dividend of 0,50 per share per year.\r<BR>\n" );
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document.write( "Let x be the number of shares he has to buy\r<BR>\n" );
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document.write( "The value of shares to be purchased = 20x\r<BR>\n" );
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document.write( "20x +5000 should fetch him 3 % or more\r<BR>\n" );
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document.write( "Interest to be earned 3%(20x+5000)\r<BR>\n" );
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document.write( "2.5% 20x +4% 5000 = 3%(20x+5000)\r<BR>\n" );
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document.write( "2.5*20x +20000= 60x +15000\r<BR>\n" );
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document.write( "10x =5000<BR>\n" );
document.write( "x=500<BR>\n" );
document.write( "More than 500 shares\r<BR>\n" );
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document.write( "Investment in shares =500*20 10000<BR>\n" );
document.write( "Dividend on shares = 2.5% = 250<BR>\n" );
document.write( "Interest on bonds = 200\r<BR>\n" );
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document.write( "Total income = 450 on investment of 15000 =3 %\r<BR>\n" );
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document.write( " </SPAN>\n" );
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