A man invested a total of $50,000 in two companies.if these companies pay dividend of 6% and 8% respectively.How much did he invest at 8% if the total yield is &
$3,700?
.08 * x + .06(50,000-x) = 3,700
To figure out how much the man invested at 8%, we can follow these steps:
Step 1: Let's assume the amount invested at 8% is 'x' dollars.
Step 2: As per the given information, the total investment is $50,000, so the amount invested at 6% can be calculated as the remaining amount: (50,000 - x).
Step 3: Now, we can calculate the dividends generated by each investment:
- The dividend from the 8% investment is (x * 8%).
- The dividend from the 6% investment is ((50,000 - x) * 6%).
Step 4: The total dividend earned is $3,700, so we can set up an equation:
(x * 8%) + ((50,000 - x) * 6%) = $3,700
Step 5: Simplify the equation:
0.08x + 0.06(50,000 - x) = 3,700
Step 6: Solve for 'x':
0.08x + (3,000 - 0.06x) = 3,700
0.08x - 0.06x = 3,700 - 3,000
0.02x = 700
x = 700 / 0.02
x = 35,000
Therefore, the man invested $35,000 at 8%.