SOLUTION: Wendy was awarded a volleyball scholarship to the University of Michigan, so on graduation her parents gave her the $20,000 they had saved for her college tuition. She opted to inv
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Question 899973: Wendy was awarded a volleyball scholarship to the University of Michigan, so on graduation her parents gave her the $20,000 they had saved for her college tuition. She opted to invest some money in a privately held company that pays 10 % per year and evenly split the remaining money between a money market account yielding 2 % and a high-risk stock that yielded 40 %. At the end of the first year she had $23,320 total. How much did she invest in each of the three? Answer by josmiceli(19441) (Show Source):
You can put this solution on YOUR website! Let = amount invested @ 10%
Let = amount invested @ 2% = amount invested @ 40%
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(1)
and
(2)
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(2)
(2)
(2)
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Multiply both sides of (1) by
and subtract (1) from (2)
(2)
(1)
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and, since
(1)
(1)
(1)
(1)
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The amount invested @ 10% is $8,000
The amount invested @ 2% is $6,000
The amount invested @ 40% is $6,000
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check:
(2)
(2)
(2)
(2)
OK
