Question

Bella invested $1000 this past year and earned $110 in interest. Bella's investment portfolio was made up of two items: stocks, which earned 15% interest, and bonds, which earned 7% interest. How much money, in dollars, did Bella invest in stocks this year? Enter your answer as a number with two decimal places.

Answer 1

Answer: Bella invested $500 in first and $500 in second stock this year.

Step-by-step explanation:

Given: Total principal amount = $1000

Interest = $110

For first year , interest = P x r  , where P= principal , r= rate of interest ( in decimal)

For first bond , interest rate=  15% = 0.15

Let P = x

Interest = 0.15x

For second bond ,  interest rate=  7% = 0.07

Let P = 1000-x

Interest = 0.07(1000-x)=70-0.07x

Now, $0.15x+70-0.07x=110$

$\Rightarrow\ 0.8x=40\\\\\Rightarrow x=\dfrac{40}{0.08}\\\\\Rightarrow x=500$

Also, 1000-x = 1000-500=500

Hence, Bella invested $500 in first and $500 in second stock this year.