Problema Solution
Alan invests a total of $15,500 in three different ways. He invests one part in a mutual fund which in the first year has a return of 11%. He invests the second part in a government bond at 7% per year. The third part he puts in the bank at 5% per year. He invests twice as much in the mutual fund as in the bank. The first year Alan’s investments bring a total return of $1295. How much did he invest in each way?
Answer provided by our tutors
Let
x = the money invested in a mutual fund
y = the money invested in a government bond
z = the money put in the bank
x + y + z = 15500
x = 2z
0.11x + 0.07y + 0.05z = 1295
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click here to see the system of equations solved for x, y and z
........
x = $7,000
y = $5,000
z = $3,500
Alan invested $7,000 in a mutual fund, $5,000 in a government bond and $3,500 he put in the bank.