Alegebra Questions?
Question:
A small company invested $50,000 by placing part of it into a savings account that earned 3.9% annual simple interest and the remainer in a stock fund that earned 10.5% annual simple interest. If the company earned $2940 annually from the investments, how much was in each account?
Answer:
For earning $2800 or more per month he must get a minimum monthly commission of $2400
He gets 3% commission on sales
3%=0.03
Minimum amount of sales is 2400/0.03
=$80,000
Let the company invest $x in savings account and the remaining $50,000-x in stock
Annual interest from savings account@3.9%
=0.039x
Annual interest from stocks@10.5%
=0.105(50000-x)
=5250-0.105x
According to the problem
0.039x+5250-0.105x=2940
=>-0.066x=-2310
=>x=2310/0.066
=35,000
Therefore,they invested $35,000 in svings account and the remaining $15,000 in stocks
1)
The executive earns
400 + (0.03)x
where x is the total sales in the month
So
400 + (0.03)x = 2800
(0.03)x = 2400
x = 80,000
-----------------------------
2)
x = amount in savings
50,000 - x = amount in stocks
(0.039)x + (0.105)(50,000 - x) = 2940
(0.039)x + 5250 - (0.105)x = 2940
(-0.066)x + 5250 = 2940
(-0.066)x = -2310
x = 35,000
35,000 in savings, 15,000 in stocks
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