A Totle of 30000 is invested in stocks At the end of the yea

A Totle of 30,000 is invested in stocks. At the end of the year, one returned 6%, the other returned 8% on the original investment. how much was invested in each stock if the total profit was $2160? Show your work.

Solution

Let us consider X is invested in stock 1 and Y is invested in Stock 2

We know total investment is $30,000/-

X+Y = 30,000 --------> 1

interest on stock 1 is 6% so return on stock 1 is 0.06X

interest on stock 2 is 8% so return on stock 2 is 0.08y

0.06X+0.08Y = 2160 ------> 2

solving 1 and 2

multiply by 100

6x+8y = 216000

3x+4y = 108000

x+y = 30000 *3

3x+3y = 90000

y = 18000

so x = 12000

So investment in stock with 6% return is $12000/-

Investment in stock with 8% return is $18000/-