Set 12: Systems of Equations (Intermediate)
Explanation
David has $8,000 to invest. He puts part in stocks earning 8% annually and the rest in bonds earning 5% annually. After one year, his total interest is $550. How much did he invest in stocks?
\3,000$
\3,500$
\4,000$
\5,000$
Detailed Explanation
Choice D is correct. Choice D is the correct answer. Let = amount in stocks and = amount in bonds. System: Step 1: From first: Step 2: Substitute: $$$0.08s + 0.05(8000 - s) = 5500.03s = 150s = 5000$$ Solution: \5,000 in stocks (and $3,000 in bonds) Verification: ✓ Strategic Tip: Investment interest = principal × rate. Choice A is incorrect because . Choice B is incorrect because . Choice C is incorrect because .
Key Steps:
The correct answer is \5,000$
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