SOLUTION: Jessica has half of her investments in stock paying a 5% dividend and the other half in stock paying 11%interest. If her total annual interest is $540 how much does she have invest

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: Jessica has half of her investments in stock paying a 5% dividend and the other half in stock paying 11%interest. If her total annual interest is $540 how much does she have invest      Log On


   

Question 1131502: Jessica has half of her investments in stock paying a 5% dividend and the other half in stock paying 11%interest. If her total annual interest is $540 how much does she have invested in each and total
Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


If her investments are split half and half, then the average interest percentage is the average of the two percentages, which is 8%. Then her total investment is the amount of interest divided by that percentage:

540%2F.08+=+6750

Her total investment is $6750. Again since her investments are split half and half, she invested $3375 in each stock.