algebra 2

Suppose that you have received an unexpected inheritance of $36,000. You have decided to invest the money by placing some of the money in stocks and some in bonds. To diversify, you decided that five times the amount in bonds should equal three times the amount invested in stocks. How much should be invested in stocks? Bonds?

Need to know how to set it up!! Hellp

  1. 👍
  2. 👎
  3. 👁
  1. Let B be the amount in stocks and S be the amount in bonds. Do the algebra.

    5 B = 3 S
    B + S = 36,000
    5B + 5S = 180,000
    Substitute 3S for 5B
    8S = 180,000
    S = 22,500
    B = 36,000 - S = 13,500

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. Math

    A retired couple needs $12,000 per year in income to supplement their Social Security. They have $150,000 to invest to obtain this income. They have decided on two investment options: AA bonds yielding 10% per annum and a bank CD

  2. Math

    Jim Hunter decided to retire to Florida in 10 years. What amount should Jim invest today so that he will be able to withdraw $25,000 at the end of each year for 30 years after he retires. Assume he can invest money at 9% interest

  3. Finance

    Molly just received a $5,000 inheritance. She wants to open an IRA for retirement, 40 years from today. If she can earn 11% per year in her IRA, how much will she be able to take out annually for 20 years in retirement? A) $24,182

  4. math

    Zach is planning to invest up to $50,000 in corporate and municipal bonds. The lest he will invest in corporate bonds is $6000 and he does not want to invest more than $27,000 in corporate bonds. He also does not want to invest

  1. math

    Zach is planning to invest up to $50,000 in corporate and municipal bonds. The lest he will invest in corporate bonds is $6000 and he does not want to invest more than $27,000 in corporate bonds. He also does not want to invest

  2. Algebra

    Last year, Deon had $10,000 to invest. He invested some of it in an account that paid 6%simple interest per year, and he invested the rest in an account that paid 9% simple interest per year. After one year, he received a total of

  3. math

    Alice wants to know how much she'll have to invest today to receive an annuity of $10,000 for six years if interest is earned at 7% annually. She'll make all of her withdrawals at the end of each year. How much should she invest?

  4. Math(Please help)

    Betsy, a recent retiree, requires $6,000 per year in extra income. She has $70,000 to invest and can invest in B-rated bonds paying 17% per year or in a CD paying 7% per year. How much money should be invested in each to realize

  1. Simple Interest

    Last year, Ivan had $20,000 to invest. He invested some of it in an acount that paid 9% simple interest per year, and he invested the rest in an account that paid 7% simple interest per year. After one year, he received a total of

  2. Math

    Mr. Jones has $14,000 to invest. He invests part at 7% and the rest at 11%. If he earns $1,220 in interest after 1 year, how much did he invest at each rate?

  3. Financial math

    Janet Woo decided to retire to Florida in 5 years. What amount should Janet invest today so she can withdraw $45,000 at the end of each year for 20 years after she retires? Assume Janet can invest money at 5% compounded annually.

  4. Math - PreCalc (12th Grade)

    Jake has decided upon three business ventures to invest in. The total cost of investing in all three ventures will be $15,000. Investing in the first venture will cost $3,000 more than investing in both the second and the third

You can view more similar questions or ask a new question.