Question

Lydia has half of her investments in stock paying an 11% dividend and the other half in a stock paying 14% interest. If her total annual interest is $440, how much does she have invested?
Answer

Answer 1

Based on the calculations, the amount of money she invested is equal to $3,520.

How to determine the amount invested?

First of all, we would assign variables to the amount of money that he invested at different interest rates as follows:

• Let x be the amount of money she invested at 11%.

• Let y be the amount of money she invested at 14%.

Since Lydia invested the same amount of money in both stocks, we have:

x = y     ....equation 1.

At the two interest rates, the total amount Lydia gets is given by:

0.11x + 0.14y = 440     ....equation 2.

Solving the equations simultaneously, we have:

0.11y + 0.14y = 440

0.25y = 440

y = 440/0.25

y = $1,760.

Thus, the total investment is given by:

Total investment = 1760 + 1760

Total investment = $3,520.

Read more on interest rates here: brainly.com/question/16793428

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