SOLUTION: Erwin invested $120,000 in stocks and bonds. If he made a 20% profit on his stocks and a 5% profit on his bonds, and the combined profit was $10,500, how much did Erwin invest in s

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Erwin invested $120,000 in stocks and bonds. If he made a 20% profit on his stocks and a 5% profit on his bonds, and the combined profit was $10,500, how much did Erwin invest in s      Log On

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Question 1082868: Erwin invested $120,000 in stocks and bonds. If he made a 20% profit on his stocks and a 5% profit on his bonds, and the combined profit was $10,500, how much did Erwin invest in stocks?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
x in stocks so profit was 0.20x
120,000-x in bonds, so profit is 0.05(120,000-x)
0.20x+6000-0.05x=10,500
0.15x=4500
x=$30,000 in stocks with 20% or $6000 profit
120,000-30,000=$90000 in bonds or $4500 profit.
They add to $10,500