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Question 105295: I have a practice sheet my teacher gave me and I can not figure out this problem. Please help.
A broker invested $25000 in two different stocks. One stock earned dividents at 3.5% and the other at 4%. If a dividend of $900 was earned on both stocks together, how much was invested in each stock.
Please help -
Thanks
Answer by Earlsdon(6294)   (Show Source):
You can put this solution on YOUR website! Let x = the amount invested at 3.5%, then ($25000-x) = the amount invested at 4%.
The dividend earned on the first amount is 3.5% of x and this can be written as: 0.035x.
The dividend earned on the second amount is 4% of ($25000-x) and this can be written as 0.04($25000-x)
The sum of these two dividend amounts is given as $900
We have enough now to write the necessary equation to solve for x.
0.035x + 0.04(25000-x) = 900 Simplify and solve for x.
0.035x+1000-0.04x = 900 Combine like-terms.
-0.005x+1000 = 900 Subtract 1000 from both sides.
-0.005x = -100 Divide both sides by -0.005
x = 20,000
$20,000 was invested at 3.5%
$5,000 was invested at 4%
Check:
$20,000(0.035)+$5,000(0.04) = $700+$200 = $900 Total dividends earned.
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