7

Set 12: Systems of Equations (Intermediate)

Explanation

Answer: D

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?

A.

\3,000$

B.

\3,500$

C.

\4,000$

D.

\5,000$

✓ Correct

Detailed Explanation

Choice D is correct. Choice D is the correct answer. Let ss = amount in stocks and bb = amount in bonds. System: {s+b=80000.08s+0.05b=550\begin{cases} s + b = 8000 \\ 0.08 s + 0.05 b = 550 \end{cases} Step 1: From first: b=8000sb = 8000 - s Step 2: Substitute: $$$0.08s + 0.05(8000 - s) = 5500.08s+4000.05s=5500.08s + 400 - 0.05 s = 5500.03s = 150s = 5000$$ Solution: \5,000 in stocks (and $3,000 in bonds) Verification: 0.08(5000)+0.05(3000)=400+150=5500.08(5000) + 0.05(3000) = 400 + 150 = 550 ✓ Strategic Tip: Investment interest = principal × rate. Choice A is incorrect because 0.08(3000)+0.05(5000)=240+250=4905500.08(3000) + 0.05(5000) = 240 + 250 = 490 \neq 550. Choice B is incorrect because 0.08(3500)+0.05(4500)=280+225=5055500.08(3500) + 0.05(4500) = 280 + 225 = 505 \neq 550. Choice C is incorrect because 0.08(4000)+0.05(4000)=320+200=5205500.08(4000) + 0.05(4000) = 320 + 200 = 520 \neq 550.

Key Steps:

The correct answer is \5,000$

Why others are wrong:
A: Choice A is incorrect and may result from a calculation error.
B: Choice B is incorrect and may result from a calculation error.
C: Choice C is incorrect and may result from a calculation error.

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