You have invested $5000 in stocks and bonds. The interest you earned on the stocks was 7%. The interest you earned on the bonds
was 14%. At the end of the year, you earned a total of $500 from your investments. How much money did you invest in the stocks and how much money did you invest in the bonds?
Money invested S + B = $5000 - - - - (a) Money earned can be represented in S & B as follows: 0.07*S + 0.14*B =$500 - - - - (b)
Equations a & b are two equations with two unknowns.
From equation a: S = 5000 - B Replace S in equation b 0.07*(5000 - B) + 0.14*B =$500 0.07B = 500 - 350 = $150 B = 150/0.07 = $2142.86 S = 5000 - 2142.86 = $2857.14
