Question

You have already invested $600 in a stock with an annual return of 11%. How much of an additional $1,400 should be invested at 12% and how much at 6% so that the total return on the entire $2,000 is 9%? (Round each answer to the nearest cent.)

Answer 1

Your initial equation where x = 600:

600 + y + z = 2000
600(.11) + .12y + .6z = 2000(.09)



Now, after reducing both equations you get:

y + z = 2000 - 600
.12y + .06z = (2000)(.09) - 600(.11)

Leaving you with a simpler equation of

y + z = 1400
.12y + .06z = 114

Now, finish solving the system. Good luck.