Choose the one alternative that best completes the statement or answers the question.
-Aliyah earned an $6,000 bonus from her sales job for exceeding her sales goals. After paying taxes at a 30% rate, she invested the remaining money in two stocks. One stock returned the equivalent of
10% simple interest after 1 yr, and the other returned 4% at the end of 1 yr. If her investments
Returned $240.00 (excluding commissions) how much did she invest in each stock
A) $2,750 at 4% and $1,450 at 10%
B) $3,000 at 4% and $1,200 at 10%
C) $1,200 at 4% and $3,000 at 10%
D) $1,450 at 4% and $2,750 at 10%

Question

Quizplus · Accepted Answer

After paying 30% taxes on her $6,000 bonus, Aliyah has $4,200 left to invest. Let x be the amount invested at 4% and (4200-x) be the amount invested at 10%. The equation for the total return is 0.04x + 0.10(4200-x) = 240. Solving this equation leads to x = $3,000 at 4% and $1,200 at 10%.

Choose the One Alternative That Best Completes the Statement or Answers