Answer:
$50,000
Step-by-step explanation:
The given relations can be used to write and solve an equation for the amount invested in stocks.
Setup
Let s represent the amount invested in stocks. Then (120,000-s) is the amount invested in bonds. The total earnings by the two investments were ...
0.18s +0.12(120,000 -s) = 17,400
Solution
Simplifying the equation, we have ...
0.06s +14,400 = 17,400
0.06s = 3000 . . . . . . . . . . subtract 14,400
s = 50,000 . . . . . . . . . . . . divide by 0.06
Neal invested $50,000 in stocks.
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Additional comment
The amount invested in bonds was 70,000. The profit earned was ...
0.18(50,000) +0.12(70,000) = 9,000 +8,400 = 17,400
