Question

Molly invested $50,000 in various stocks and bonds. She earned 15% on the bonds and 18% on the stocks. Molly's total profit on both types of investments was $8700, how much of the $50,000 did she invest in bonds?

Answer 1

$10000

Explanation:

Given that:

Molly invested $50,000 in various stocks and bonds.

She earned 15% on bonds and 18% on stocks

Let the bonds be denoted by a

However, her profit on both types of investment is said to be $8700

We are to find how much of the $50,000 did she invest in bonds.

i.e

0.15a + 0.18(50000-a) = 8700

open brackets

0.15a + 9000 - 0.18a = 8700

Collect like terms

0.15a - 0.18a = 8700 - 9000

-0.03a = -300

Divide both sides by(-0.03); we get

a = 10000

Thus, Molly invested $10000 in the bonds.