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A school must raise exactly $2,500 over the next year by investing a total of $30,000 in stocks, which yield 9% annual interest, and bonds, which yield 8% annual interest. If the school wants to invest as much as possible in stocks, then how much should the school invest in stocks?

A. $1,000 B. $10,000 C. $20,000 D. $29,000 E. $30,000

Re: A school must raise exactly $2,500 over the next year by investing a [#permalink]

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19 Mar 2017, 06:50

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Bunuel wrote:

A school must raise exactly $2,500 over the next year by investing a total of $30,000 in stocks, which yield 9% annual interest, and bonds, which yield 8% annual interest. If the school wants to invest as much as possible in stocks, then how much should the school invest in stocks?

A. $1,000 B. $10,000 C. $20,000 D. $29,000 E. $30,000

let x be the amount to be invested in stocks

9x/100 + (8/100)*(30000-x) = 2500

9x + 240000 - 8x = 250000

x = 10000

Hence option B is correct Hit Kudos if you liked it

Re: A school must raise exactly $2,500 over the next year by investing a [#permalink]

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19 Mar 2017, 06:55

0akshay0 wrote:

Bunuel wrote:

A school must raise exactly $2,500 over the next year by investing a total of $30,000 in stocks, which yield 9% annual interest, and bonds, which yield 8% annual interest. If the school wants to invest as much as possible in stocks, then how much should the school invest in stocks?

A. $1,000 B. $10,000 C. $20,000 D. $29,000 E. $30,000

let x be the amount to be invested in stocks

9x/100 + (8/100)*(30000-x) = 2500

9x + 240000 - 8x = 250000

x = 10000

Hence option B is correct Hit Kudos if you liked it

A school must raise exactly $2,500 over the next year by investing a [#permalink]

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19 Mar 2017, 07:14

appu2693 wrote:

0akshay0 wrote:

Bunuel wrote:

A school must raise exactly $2,500 over the next year by investing a total of $30,000 in stocks, which yield 9% annual interest, and bonds, which yield 8% annual interest. If the school wants to invest as much as possible in stocks, then how much should the school invest in stocks?

A. $1,000 B. $10,000 C. $20,000 D. $29,000 E. $30,000

let x be the amount to be invested in stocks

9x/100 + (8/100)*(30000-x) = 2500

9x + 240000 - 8x = 250000

x = 10000

Hence option B is correct Hit Kudos if you liked it

A school must raise exactly $2,500 over the next year by investing a [#permalink]

Show Tags

13 Nov 2017, 23:51

One of the quickest way to solve this problem is using allegation.

If whole amount is invested in stock, the return: $30000*9% = $2700 If whole amount is invested in bond, the return: $30000*8% = $2400 But the return needed is exactly $2500

See attachment.

Hence the total amount needs to be invested in stock and bond in the ratio 1:2. Therefore amount invested in stock is $30000*(1/3) = $10000.