SOLUTION: You have already invested $300 in a stock with an annual return of 11%. How much of an additional $1,300 should be invested at 12% and how much at 6% so that the total return on th

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Question 845995: You have already invested $300 in a stock with an annual return of 11%. How much of an additional $1,300 should be invested at 12% and how much at 6% so that the total return on the entire $1,600 is 9%? (Round each answer to the nearest cent.)
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
You have already invested $300 in a stock with an annual return of 11%. How much of an additional $1,300 should be invested at 12% and how much at 6% so that the total return on the entire $1,600 is 9%?
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Equation::
0.11*300 + 0.12x + 0.06(1300-x) = 0.09*1600
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11*300 + 12x + 6*1300-6x = 9*1600
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6x = 9*1600-11*300-6*1300
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6x = 3300
x = $550.00
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Cheers,
Stan H.
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