Example

Solving a Dual Stock Interest Application Using a System of Equations

A system of equations can model an application involving two stock investments. For example, if Julius invested $7,000\$7{,}000 into two stocks—one paying 11%11\% interest and the other paying 13%13\%—and earned 12.5%12.5\% interest on the overall investment, let xx and yy be the amounts invested in the respective stocks. The total principal equation is x+y=7,000x + y = 7{,}000. The interest earned equation is 0.11x+0.13y=0.125(7,000)0.11x + 0.13y = 0.125(7{,}000). Solving the system reveals that he placed $1,750\$1{,}750 into the 11%11\% stock and $5,250\$5{,}250 into the 13%13\% stock.

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Updated 2026-04-25

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