Mr. moneybags invests $10,000 in stock and bonds. the stocks pay 5% while the bonds pay 10% giving an annual income of $700. which equation should be used to solve this problem?
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Given:
Total amount invested = $10,000
Stocks pay = 5%
Bonds pay = 10%
Total annual income = $700
To find:
The equations required to solve this problem
Calculation:
Let B be the amount invested in bonds and S be the amount invested in stocks, according to the given data,
=> Total amount invested = $10,000
=> B+S = $10,000
=> Total annual income = $700
=> (5/100)B + (10/100)S = $700
=> 0.05B + 0.1S = $700
The equations required to solve this problem are B+S = $10,000, 0.05B + 0.1S = $700
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