Michelle invested $12,000 in stocks and bonds, paying 4.8% and 7% annual interest,
2 answers:
Answer:
<h2>Michelle invested $3500 in stocks and $8500 in bonds.</h2>Step-by-step explanation:
To solve this problem, we have to determine a system of equations, because there's two different nature that cannot be solved using only one equation.
Givens:
- Investment $12000 in stocks and bonds.
- Stocks pay 4.8% and bonds pay 7% as annual interest.
- The total interest earnings was $763.
So, let's say that is stocks, and
is bonds.
The first equation would be:
Because between stocks and bonds, Michelle invested $12000.
The second equation would be:
Which means that with an annual interest of 4.8% for stocks and 7% for bonds, Michelle earned $763.
Now, we isolate in the first equation and replace it in the second equation:
Now, we replace this value in the first equation:
Therefore, Michelle invested $3500 in stocks and $8500 in bonds.
You might be interested in
Hello!
To find how much money total will be in the account after four years, you need to use the function, , as seen above. In this function, a is the starting value, r is the interest rate, and t is the amount of time (in years).
Before substituting values into the function, we need to convert 3% into a decimal. Remember that all percentages are out of 100, so we divide 3 by 100 and remove the percentage sign, or move the decimal two places to the left.
3/100 = 0.03 | 0.03 is the interest rate.
With all the necessary values, we can find the total amount in the account. In this case, a = 1200, r = 0.03, and t = 4.
y = 1350.610572, which can be rounded to 1350.61 dollars.
Therefore, after 4 years, the total amount in the account will be about 1350.61 dollars.