You have already invested $400 in a stock with an annual return of 11%. How much of an additional $1,200 should be invested at 12% and how much at 6% so that the total return on the entire $1,600 is 9%? (Round each answer to the nearest cent.)

Question

anonymous · Answer

Please help guys

anonymous · Answer

The annual return on $400 in stock is 0.11*400 = $44

anonymous · Answer

the total return you want is 0.09 * 1600 = $144

anonymous · Answer

let a be the amount invested at 12% and b be the amount invested at 6%

0.12a + 0.06b = 144 - 44

anonymous · Answer

12a + 6b = 10000

anonymous · Answer

you mean 100?

anonymous · Answer

a + b = 1200

anonymous · Answer

put those 2 equations together and solve for a and b:

12a + 6b = 10000
    a +   b = 1200

anonymous · Answer

Using elimination, I got a = $466.67 and b = $733.33

anonymous · Answer

So, out of an additional $1200, invest $466.67 at a rate of 12% and $733.33 at a rate of 6%

anonymous · Answer

Thats correct. Thanks!

anonymous · Answer

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