Example

Solving a Stock and Savings Investment Application Using a System of Equations

Consider an investment of $50,00050{,}000 divided between a stock fund earning 7%7\% interest per year and a savings account earning 2%2\% interest per year. The goal is to earn a total of 6.2%6.2\% interest on the investment in one year. Let ss be the amount in stocks and vv be the amount in savings. The system of equations is: s+v=50,000s + v = 50{,}000 0.07s+0.02v=0.062(50,000)0.07s + 0.02v = 0.062(50{,}000) The second equation simplifies to 0.07s+0.02v=3,1000.07s + 0.02v = 3{,}100. Solving this system yields s=42,000s = 42{,}000 and v=8,000v = 8{,}000. Thus, $42,00042{,}000 is invested in the stock fund and $8,0008{,}000 in the savings account.

0

1

Updated 2026-05-26

Contributors are:

Who are from:

Tags

OpenStax

Intermediate Algebra @ OpenStax

Ch.4 Systems of Linear Equations - Intermediate Algebra @ OpenStax

Algebra

Related
Learn After