27
QuizMultiple Choice

N/A — Exam

Question 27 • Financial Math

An investor is putting $⁢20,000 into stocks and bonds. He would like the ratio of stocks to bonds to be 1 to 3 Which equation can he use to find the amount to invest in bonds, x ?

Answer
A
13=x20,000 + x
B
13=20,000 + xx
C
13=20,000 − xx
D
13=x20,000 − x

Explanation

The ratio of stocks to bonds is 1 to 3, so stocks divided by bonds must equal 1/3. If x dollars go into bonds, then 20,000 − x dollars go into stocks. Thus the equation is 1/3 = (20,000 − x)/x, which is choice C.

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