Question

Lily has two times as much money invested in 8% stocks as she has in bonds paying 6%. How much she has invested in stocks if her annual income from stocks and bonds is $325.6?

Answer 1

Let's say Lily invested x amount of money in bonds and 2x in stocks. What the yield is annually from those is 6% of x plus 2 * 8% of x, as she gets 6% in bonds and 8% in stocks. Simplified is 0.06x + 0.16x. Add and you get 0.22x. Now you can solve a simple equation.

Equation:

0.22x = 325.6 (as annual income is $325.60)

----divide both sides by 0.22----

x = 1480

----multiply by 2 to get your answer----

2x = amount of stocks = 1480 * 2 = $2960