SOLUTION: John received an inheritance of $12,000$12,000 that he divided into three parts
and invested in three ways: in a money-market fund paying 3%3% annual interest;
in municipal bonds
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-> SOLUTION: John received an inheritance of $12,000$12,000 that he divided into three parts
and invested in three ways: in a money-market fund paying 3%3% annual interest;
in municipal bonds
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Question 1167324: John received an inheritance of $12,000$12,000 that he divided into three parts
and invested in three ways: in a money-market fund paying 3%3% annual interest;
in municipal bonds paying 4%4% annual interest; and in mutual funds
paying 7%7% annual interest. John invested $4,000$4,000 more in municipal funds
than in municipal bonds. He earned $670$670 in interest the first year. How much
did John invest in each type of fund? Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! x in MM at 3% for .03x per year
12000-x in the other two=y and y+4000
2y+4000=12000-x
2y=8000-x
y=4000-0.5x *0.04=160-0.02x
y+4000=8000-0.5x*0.07=560-0.035x
Those three add to $670=.03x+160-0.02x+560-0.035=720-0.025x
so -50=-0.025x
x=$2000 in MM @3% or $60
y=$3000 in MB @4% or $120
y+4000=$7000 in MF at 7% or $490
