SOLUTION: How do I set this up as an equation; i.e., x + 2y + z = $5000? Thank you.
An investor chooses to invest $5000 in the Global Equities, Money Market, and Social Choice accou
Algebra.Com
Question 145006This question is from textbook Finite Math and Applied Calculus
: How do I set this up as an equation; i.e., x + 2y + z = $5000? Thank you.
An investor chooses to invest $5000 in the Global Equities, Money Market, and Social Choice accounts (shown below). She wants to put 5 times as much money in the Money Market account as in the Global Equities account. She assumes that she will be able to get a return equal to the 10-year average, and she wants the total return on her investment to be 7 percent.
How much money should she invest in each account? Round each percentage to the nearest whole-number.
Annuity Accounts 10-Year Average
Global Equities 6.96%
Money Market 4.25%
Social Choice 10.01%
This question is from textbook Finite Math and Applied Calculus
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
An investor chooses to invest $5000 in the Global Equities, Money Market, and Social Choice accounts (shown below). She wants to put 5 times as much money in the Money Market account as in the Global Equities account. She assumes that she will be able to get a return equal to the 10-year average, and she wants the total return on her investment to be 7 percent.
How much money should she invest in each account? Round each percentage to the nearest whole-number.
Annuity Accounts 10-Year Average
Global Equities 6.96%
Money Market 4.25%
Social Choice 10.01%
-------------
Let GE amount be "x"
Then MM amount is "5x"
And SC amount is "5000-6x"
------------------------------
Interest Equation:
0.0696x + 0.0425(5x) + 0.1001(5000-6x) = 0.0700*5000
Multiply thru by 10000 to get rid of the decimals:
694x + 425*5x + 1001*5000-1001*6x = 700*5000
-3187x +5005000 = 3500000
-3187x = -1595000
x = 472.23 (investment in GE)
5x = 2361.15 (investment in MM)
5000-6x = $2166.62 (investment in SC)
=================
Cheers,
Stan H.
RELATED QUESTIONS
Recall that a formula bank account earning compound interest is
A=P(1+r/m)^mt - given
(answered by solver91311)
gallons of water each day.
A) write an expression that gives the gallons "g" of water... (answered by solver91311)
An investor has $5000 to invest and decides to invest some of it with company A and the... (answered by ramkikk66)
OK, I think that I got this right but I would like a double check please.
Set up an... (answered by richwmiller)
Assume that the Dell Computer Corp. has increased its output of computers by 400... (answered by rfer)
I am working on trying to write an equation for 2 different certificates of deposit... (answered by jsmallt9)
if I want to invest 5000 at 6% how much would I have in 12... (answered by Fombitz)
I know the answer to this problem, but they are asking for an equation and I'm not sure... (answered by josgarithmetic)
Jennifer has $5000 to invest into two accounts paying simple interest. The first account... (answered by macston)