SOLUTION: Mr. Rich invested 50,000. Part of it he put in a gold mine stock from which he hoped to receive 20% per year. The rest he invested in bank stock which was paying 6%. If he received
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-> SOLUTION: Mr. Rich invested 50,000. Part of it he put in a gold mine stock from which he hoped to receive 20% per year. The rest he invested in bank stock which was paying 6%. If he received
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Question 104921: Mr. Rich invested 50,000. Part of it he put in a gold mine stock from which he hoped to receive 20% per year. The rest he invested in bank stock which was paying 6%. If he received 400 more the first year from the bank stock than from the mining stock, how much did he invest in each stock? Answer by Fombitz(32388) (Show Source):
You can put this solution on YOUR website! Let's name the variables first
G-amount of money he put in the gold stock
B-amount of money he put in the back stock
1.
Interest for one year is calculated using the rate and the amount of money. Interest for gold stock Interest for bank stock
You also know a relationship between the interests from each stock. Interest between gold stock and bank stock Susbtitute.
2. Multiply by 100 to simplify.
From equation 1,
Substituting into 2, Substitute. Distribute.
From 1, Substitute.
Check your answer.
Good answer.
