SOLUTION: A small company had $24,000 to invest. It invested some of the money in a bank that paid 8% annual simple interest. The rest of the money was invested in stocks that paid dividen

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: A small company had $24,000 to invest. It invested some of the money in a bank that paid 8% annual simple interest. The rest of the money was invested in stocks that paid dividen      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 228604:
A small company had $24,000 to invest. It invested some of the money in a bank that paid 8% annual simple interest. The rest of the money was invested in stocks that paid dividends equivalent to 11% annual simple interest. At the end of 1 year, the combined income from these investments was $2,340. How much was originally invested in stocks?
Answer by checkley77(12844) About Me  (Show Source):
You can put this solution on YOUR website!
.11x+.08(24,000-x)=2,340
.11x+1,920-.08x=2,340
.03x=2,340-1,920
.03x=420
x=420/.03
x=14,000 amount invested @ 11%.
24,000-14,000=10,000 invested @ 8%.
Proof:
.11*14,000+.08*10,000=2,340
1,540+800=2,340
2,340=2,340