Question

2) Theodore inherited two different stocks whose yearly income was $2100. The total appraised value of the stocks was $40,000 and one was paying 4% and one 6% per year. What was the value of each stock? 3) Yi-fei Wang inherited $20,000 which she invested in stocks and bonds. The stocks returned 6% and the bonds 8%. if the return on the

Answer 1

Given data:

The value of the socks are x+y=$40,000.

The total interest is I=$2100.

The interest on first stock is,

i=x(4%)(1)/100

i=0.04x

The interest on second stock is,

i'=y(6%)(1)/100

=0.06x

0.04x+0.06y=2100

Substitute 40,000-x for y in the above expression.

0.04x+0.06(40,000-x)=2100

0.04x-0.06x=-300

-0.02x=-300

x=$15000

The value of second stock is,

y=40,000-15,000

=$25,000