Aurora invested $8000 in two stocks. One stock de- creased in value by 8%; the other, by 20%. If she lost a total of $1000 on these two stocks, how much was invested in the stock that decreased in value by 8%?

I don't know the model I should use to figure problems like these out.

Thanks in advance.

Algebra can help you arrive at the answer pretty quickly.

Let the amount invested in the stock that decreased by 8% be x.

Then the amount invested in the stock that decreased by 20% will be 8000-x

Since the total amount lost =1000,

8/100 *x + 20/100 * (8000-x ) =1000

8/100 *x + 1600 - 20/100 x =1000

1600 - 12/100 x =1000

Rearranging the terms gives 12/100 x  = 600

Hence, the amount invested in the stock which decreased in value by 8%
= x = 600 * (100/12) = $5000 (shown)

Hope this helps. Peace.


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Frederick Koh


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