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Question 308783: Martin purchased company ABC's stock and invested the balance in his money market account. ABC's stock yielded 10% last year and his money market account yielded 7% last year. If Martin's initial investments amount to $21,000 and the annual income is $1680, how much money is invested in stock and how much is invested in his money market account?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Martin purchased company ABC's stock and invested the balance in his money market account. ABC's stock yielded 10% last year and his money market account yielded 7% last year. If Martin's initial investments amount to $21,000 and the annual income is $1680, how much money is invested in stock and how much is invested in his money market account?
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Equations:
Quantity: S + M = 21000 dollars
Interest:0.10S + 0.07M = 1680 dollars
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Multiply thru Quantity by 10
Multiply thru Interest by 100
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10S + 10M = 210000
10S + 7 M = 168000
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Subtract 2nd from 1st and solve for "M":
3M = 42000
M = 14000 (amt invested in money market
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Since S + M = 21000, S = 7000 (amt invested in stocks)
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Cheers,
Stan H.
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