Given:
Total amount for investment = $32000
Rate of interest for Stock A = 4%
Rate of interest for Stock B = 7%
Jim is hoping to earn $2,000 in interest.
To find:
The amount of investments in Stock A and Stock B.
Step-by-step explanation:
Let amount of investments in Stock A = $x
Amount of investments in Stock B = $y
Total amount for investment = $32000
[tex]x+y=32000[/tex] ...(i)
Rate of interests in Stock A and Stock B are 4% and 7%. Total interests is $2000.
[tex]0.04x+0.07y=2000[/tex] ...(ii)
From (i) and (ii), we get
[tex]0.04x+0.07(32000-x)=2000[/tex]
[tex]0.04x+2240-0.07x=2000[/tex]
[tex]-0.03x=2000-2240[/tex]
[tex]-0.03x=-240[/tex]
Divide both sides by -0.03.
[tex]x=\dfrac{-240}{-0.03}[/tex]
[tex]x=8000[/tex]
Put x=8000 in (i).
[tex]8000+y=32000[/tex]
[tex]y=32000-8000[/tex]
[tex]y=24000[/tex]
Therefore, the amount of investments in Stock A and Stock B are $8000 and $24000 respectively.
