Question 1064743: A person plans to invest a total of $80,000 in a money market account, a bond fund, an international stock fund, and a domestic stock fund. She wants 60% of her investment to be conservative (money market and bonds). She wants the amount in domestic stocks to be 44 times the amount in international stocks. Finally, she needs an annual return of $3,200. Assuming she gets annual returns of 2.5% on the money market account, 3.5% on the bond fund, 4% on the international stock fund, and 6% on the domestic stock fund, how much should she put in each investment?
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! M@.025
B@.035
IS@.04
S@.06
M+B=48,000
interest is .025M+.035B
IS+S=32,000
S=44IS
Therefore, 45IS=32,000
IS=711.11@.04=$28.44
S=44*IS=$31,289@.06=$1877.33
M+B=48,000
.025M+.035B=3200-(1901.77)=1294.23
multiply that by -40 to eliminate M
-M-1.4B=-51769.20
-0.4B=-3769.20
B=9423@.035=$329.81
M=38577@.025=$954.43
The sum of 329.81+964.43+28.44+1877.33=$3200
|
|
|
