Answer: She invested $1100 in Ramanar corp and $1500 in bakery brothers.
Step-by-step explanation:
Let x represent the amount which she invested in Ramanar corp.
Let y represent the amount which she invested in bakery brothers.
Melanie invested $2600 at the beginning of 2001 in two different stocks, Ramanar corp and bakery brothers. This means that
x + y = 2600
The formula for determining simple interest is expressed as
I = PRT/100
Considering the investment at Ramanar corp,
P = $x
T = 1 year
R = 6℅
I = (x × 6 × 1)/100 = 0.06x
Considering the investment at bakery brothers,
P = $y
T = 1 year
R = 9℅
I = (y × 9 × 1)/100 = 0.09y
In total melanie earned $201 for the year. it means that
0.06x + 0.09y = 201 - - - - - - - - - -1
Substituting x = 2600 - y into equation 1, it becomes
0.06(2600 - y) + 0.09y = 201
156 - 0.06y + 0.09y = 201
- 0.06y + 0.09y = 201 - 156
0.03y = 45
y = 45/0.03
y = 1500
x = 2600 - y = 2600 - 1500
x = 1100
