Question

ED Wong has total of Tk.70,000 invested in a common stock, corporate bonds, and municipal bonds. In order to limit risk, he has twice as much invested

Ratios, rates, proportions
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asked 2021-01-23
ED Wong has total of Tk.70,000 invested in a common stock, corporate bonds, and municipal bonds. In order to limit risk, he has twice as much invested in corporate bonds as in stock. Last years, the common stock paid a 2% dividend, the corporate bonds paid 10% interest, and the municipal bonds paid 6% interest. ED’s total income last year from his investments was in Tk.4,800. How much has he invested in bonds?

Answers (1)

2021-01-24
Let = investment in stock
2x = investment in corporate bonds
y = investment in municipal bonds
Eq 1: 3x+ y = $70,000
y = $70,000- 3x
Eq 2:
Simplify:
0.02x + 0.10(2x) + 0.06y = $4,800
0.22x + 0.06y = $4,800
Substitute: 0.22x + 0.06($70,000 - 3x)=$4,800
0.22x + 0.18x + $4,200=$4,800
0.40x = $600
x=1,500 (stock)
2x=2(1,500) = $3,000
Answer: $3,000
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