SOLUTION: You have already invested $350 in a stock with an annual return of 11%. How much of an additional $800 should be invested at 12% and how much at 6% so that the total return on the
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Question 511299: You have already invested $350 in a stock with an annual return of 11%. How much of an additional $800 should be invested at 12% and how much at 6% so that the total return on the entire $1,150 is 9%? (Round each answer to the nearest cent.)
You can put this solution on YOUR website! Let = amount invested @ 12%
Let = amount invested @ 6%
given: is Return on $350 @ 11% is return on $1150 @ 9%
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(1)
(2)
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Multiply both sides of (2) by
(2)
(2)
(2)
Multiply both sides of (1) by and
subtract (1) from (2)
(2)
(1)
and, since
$283.33 should be invested @ 12% and
$516.67 should be invested @ 6%
check:
(2)
(2)
(2)
OK
