Mr. Lee invested some money. Lost 4% in a stock and gained 3.2% in a bond. Overall he lost 11.2$. If he invested the amount in the stock to the bond vice versa, then he wouldve gained $3.2, how much is in the bond and how much is in the stock?

I am so confused, and out of curiosity- what are stocks and bonds?

Thanks!

stock amount = s

bond amount = b

gain = -.04 s + .032 b = -11.2

gain = -.032 s + .04 b = 3.2
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https://oliveramesmacrof.wordpress.com/definition-of-financial-assets-money-stocks-bonds/

don't think your equation is right. Can't get the answer

To solve this problem, let's assign variables to represent the amount of money Mr. Lee invested in the stock and the bond. Let's say the amount invested in the stock is S and the amount invested in the bond is B.

From the information given, we can form two equations:

Equation 1: Mr. Lee lost 4% in the stock and gained 3.2% in the bond, resulting in an overall loss of $11.2.
0.04S + 0.032B = -11.2

Equation 2: If Mr. Lee had invested the stock amount in the bond and vice versa, he would have gained $3.2.
0.032S + 0.04B = 3.2

Now we can solve these two equations simultaneously to find the values of S and B.

To understand stocks and bonds:

1. Stocks: Stocks represent ownership in a company. When you buy stocks, you become a shareholder and have a claim on the company's assets and earnings. The value of a stock can increase or decrease based on various factors such as company performance, industry conditions, and market trends.

2. Bonds: Bonds are debt instruments issued by governments, municipalities, corporations, or other entities to raise funds. Essentially, when you buy a bond, you are lending money to the issuer for a specific period, and in return, they promise to repay the principal amount along with periodic interest payments. Bonds typically offer fixed interest rates and have a predetermined maturity date.

In summary, stocks represent ownership in a company, while bonds represent debt obligations issued by entities. Both stocks and bonds can be traded on financial markets and offer potential returns to investors. The value of stocks and bonds can fluctuate based on various factors and market conditions.