SOLUTION: Martin purchased company ABC's stock and invested the balance in his money market account. ABC's stock yielded 18% last year and his money market account yielded 5% last year. If M
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Question 553991: Martin purchased company ABC's stock and invested the balance in his money market account. ABC's stock yielded 18% last year and his money market account yielded 5% last year. If Martin's initial investments amount to $8000 and the annual income is $660, how much money is invested in stock and how much is invested in his money market account?
Please help me solve this problem. Thank you. Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! x was invested in ABC stock.
y was invested in money market.
.18x + .05y = 660
x + y = 8000
solve these 2 equations simultaneously for your answer.
from the second equation solve for y to get:
y = 8000 - x
substitute in first equation to get:
.18x + .05(8000-x) = 660
simplify to get:
.18x + 400 - .05x = 660
subtract 400 from both sides of this equation and combine like terms to get:
.13x = 260
divide both sides of this equation by .13 to get:
x = 2000.
since x + y = 8000, then:
x = 2000
y = 6000
income from x = .18*2000 = 360
income from y = .05*6000 = 300
sum of income from both investments = 660.
everything checks out ok so that's your answer.
$2000 is invested in stock and $6000 is invested in money market.
