You have 10,000.00 to invest in two types of stock. the expected annual returns for the stocks are: stock A - 10 percent, stock b - 6 percent. You want the overall annual return to be 8 percent. Write a linear system of equations that represents the given information.

Question

You have 10,000.00 to invest in two types of stock. the expected annual returns for the stocks are: stock A - 10 percent, stock b - 6 percent. You want the overall annual return to be 8 percent. Write a linear system of equations that represents the given information.

How or where do I start to figure this out?

Answer 1

let the amount invested at 10% be x

let the amount invested at 6% be 10000-x

so ...

.1x + .06(10000-x) = .08(10000)
.1x + 600 - .06x = 800
.04x = 200
x = 5000

just read the question again, an saw that you wanted a system of equations, that is, two variable

let 10% money be x
the other be y

x+y = 10000
.1x + .06y = 800
2nd by 100 ---> 10x + 6y = 80000
or
5x+3y=40000

I would now multiply the first be 3 and subtract them, to get the same answer