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4 August, 01:59

An investor invests in stock at 5% and in bonds at 8% in order to maintain an

income of at least $20,000. Write the linear inequality that expresses the

relationship between the amounts invested in stocks and bonds.

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Answers (1)
  1. 4 August, 04:08
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    Let's say X is the amount you invest in stock, and B is the amount you invest in bonds.

    How much income will your stocks generate in a year? They will generate X * 0.05

    How much income will your bonds generate in a year? They will generate B * 0.08

    And you need the sum of these two amounts to be greater than or equal to 20,000

    So your equation is:

    X*0.05 + B*0.08 > = 20,000

    This is the correct answer, but just in case your teacher is looking for X in terms of B, just move the B term to the other side of the equation:

    X*0.05 > = 20,000 - B*0.08

    and divide both sides by 0.05:

    X > = 400,000 - B*1.6
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