Problema Solution
Maria invested a total of $25,000 in stocks, bonds, and a mutual fund. In one year she earned 8% on her stock investment, 10% on her bond investment, and 6% on her mutual fund, with a total return of $1,860. Unfortunately, the amount invested in the mutual fund was twice as large as the amount she invested in the bonds. How much did she invest in each?
Answer provided by our tutors
let
s = the money invested in stocks
b = the money invested in bonds
f = the money invested in a mutual bond
Maria invested a total of $25,000 in stocks, bonds, and a mutual fund
s + b + f = 25000
in one year she earned 8% on her stock investment, 10% on her bond investment, and 6% on her mutual fund, with a total return of $1,860
0.08s + 0.10*b + 0.06f = 1860 multiply both sides by 50
4s + 5b + 3f = 93000
the amount invested in the mutual fund was twice as large as the amount she invested in the bonds
f = 2b
by solving the system of equations
s + b + f = 25000
4s + 5b + 3f = 93000
f = 2b
we find
s = $4,000
b = $7,000
f = $14,000
click here to see the step by step solution of the system of equations
Maria invested $4,000 in stocks, $7,000 in bonds and $14,000 in mutual fund.