SOLUTION: You have already invested $550 in a stock with an annual return of 11%. How much of an additional $900 should be invested at 12% and how much at 6% so that the total return on the
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Question 662023: You have already invested $550 in a stock with an annual return of 11%. How much of an additional $900 should be invested at 12% and how much at 6% so that the total return on the entire $1,450 is 9%? (Round each answer to the nearest cent.) Answer by ReadingBoosters(3246) (Show Source):
You can put this solution on YOUR website! 550(.11) = 60.50 return from 11%
1450(.09) = 130.5 total ROI
130.50 - 60.50 = 70 return needed
.12x + .06x = 70
x = $ at 12%
y = % at 6%
x+y = 900; so x = 900 - y
.12x + .06y = 70
.12(900-y) + .06y = 70
108 - .12y + .06y = 70
108 - .06y = 70
108 - 70 = .06y
38 = .06y
y = 633.33
x = 900 - 633.33 = 266.67
266.67 at 12%
633.33 at 6%
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