Question

A total of $30,000 is to be invested in stock and bond. if the amount invested in bonds is four times that invested in stocks, how much is invested in each category.

Answer 1

Let the amount invested in stocks be x.

The amount invested in bonds is four times that invested in stockes.

Therefore, the amount invested in bonds is 4x.

Accordingly,

$\begin{gathered} 4x+x=30000 \\ 5x=30000 \\ x=6000 \end{gathered}$

So, the amount invested in stocks is $6000.

The amount invested in bonds is

$6000\times4=24,000$

So, the amount invested in bonds is $24,000.