Question

Algebra Question:
$500 is invested in a stock that returns 12%. How much of an additional $3200 should be invested in each of two different stocks earning 18% and 10% in order to earn a total return of 16%.

Answer 1

i can't seem to get the books answer ,

Answer 2

book says
$1,650 at 18% and $1,550 at 10%

Answer 3

I did
.18( x) + .10 (y ) + .12 * 500 = .16 ( 3200 + 500)

x + y = 3200

Answer 4

The book's answer is incorrect. Correct answers are $2650 at 18% and $550 at 10%.

Answer 5

look at wolfram's answer
http://www.wolframalpha.com/input/?i=.18x%2B.10y+%2B+.12*500+%3D+.16%283200%29%2C+x+%2B+y+%3D+3200

Answer 6

something is very odd here

Answer 7

help anyone

Answer 8

hi krotom :)

Answer 9

I plugged the two equations into wolfram, and i got the books answer . or do you disagree with my equation set up

Answer 10

i posted the question into wolfram
http://www.wolframalpha.com/input/?i=.18x%2B.10y+%2B+.12*500+%3D+.16%283200%29%2C+x+%2B+y+%3D+3200

Answer 11

Your equation setup in Wolf is different from your posted set up. In wolf you have the total return as 0.16 * 3200. However your posting has " .16 ( 3200 + 500)"

Answer 12

right, i assumed we should add 500 , because it says 'total return'

Answer 13

$500 is invested in a stock that returns 12%. How much of an additional $3200 should be invested in each of two different stocks earning 18% and 10% in ***order to earn a total return of 16%.***

Answer 14

I think that the correct interpretation of the question is to take the total investment as being $500 + $3200. If otherwise, why mention the $500 and its return?

Answer 15

ok then you agree with the book's answer?

Answer 16

right, it seems odd to mention it otherwise (if we don't include it)

Answer 17

No, I disagree with the book's answer.

Answer 18

book says $1,650 at 18% and $1,550 at 10%

Answer 19

what was your equation set up?

Answer 20

My equations are basically the same as yours posted here. The first equation on Wolf states the return on three investments on the left hand side, but has the return on only two investments on the right hand side. Therefore that equation on Wolf is invalid.

Answer 21

ok so you disagree with this
.18( x) + .10 (y ) + .12 * 500 = .16 ( 3200 + 500)

Answer 22

".18( x) + .10 (y ) + .12 * 500 = .16 ( 3200 + 500) "
I agree with the above equation.
The above is not what you have on Wolf. This is what is on Wolf (as below):
.18( x) + .10 (y ) + .12 * 500 = .16 ( 3200)
I disagree with that.

Answer 23

wow, i feel stupid
i typed a new entry into wolfram,
here it is fixed
http://www.wolframalpha.com/input/?i=.18x%2B.10y+%2B+.12*500+%3D+.16%283200%2B500%29%2C+x+%2B+y+%3D+3200

Answer 24

np. Sorry I wasn't clear enough earlier. :)

Answer 25

darn, this is strange when the book has such an error

Answer 26

i tried to reverse engineer, the only way to get the books answer was to remove the 500 part

Answer 27

this equation will give you the book's answer (but the equation seems wrong)
http://www.wolframalpha.com/input/?i=.18x%2B.10y+%2B+.12*500+%3D+.16%283200%29%2C+x+%2B+y+%3D+3200

Answer 28

i really hate book mistakes , thats one of my pet peeves

Answer 29

I think you have probably found the error made when the book's answer was calculated. Answers in textbooks should be thoroughly and independently checked. Purchasers are getting poor value for their money when answers in books can't be trusted.

Answer 30

i agree