SOLUTION: Deborah splits $20,000 between Bryce Bond Fund with an annual yield of 8% and Strauss Stock Fund with an annual yield of 12%. If her total income for one year on the two investment

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Question 314449: Deborah splits $20,000 between Bryce Bond Fund with an annual yield of 8% and Strauss Stock Fund with an annual yield of 12%. If her total income for one year on the two investments was $1,836.88, then how much did she invest in each fund?


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Answer by texttutoring(324) About Me  (Show Source):
You can put this solution on YOUR website!
Let x=amount invested at 8%
Let y=amount invested at 12%

You have two variables, so you need two equations.

Equation 1: x+y=20000 (the sum of her initial investments)
Equation 2: 0.08x + 0.12y = 1836.88 (the sum of her investment earnings)

Now you can isolate for x or y in Equation 1. I will choose to isolate for x:

x=20000-y

Now substitute this value into Equation 2, and then solve for y:

0.08(20000-y) +0.12y = 1836.88
1600-0.08y +0.12y = 1836.88
1600 +0.04y = 1836.88
0.04y = 236.88
y=5922

Now plug this y value into Equation 2 to find x:

x=20000-y
x=20000-5922
x=14078