SOLUTION: Nick L is training to be a financial wizard. His first lesson is in diversity. he knows that one must never invest all of one's money in the same place, so here is what he does. He
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Question 1185139: Nick L is training to be a financial wizard. His first lesson is in diversity. he knows that one must never invest all of one's money in the same place, so here is what he does. He puts one half of his money in a CD at 5%, and he puts one third of it in the municipal bonds at 6%, and then he puts the rest in the stock market at 12%. At the end of the year, he earns $57.85. How much money did he invest altogether? Answer by ikleyn(52814) (Show Source):
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Nick L is training to be a financial wizard. His first lesson is in diversity.
He knows that one must never invest all of one's money in the same place, so here is what he does.
He puts one half of his money in a CD at 5%, and he puts one third of it in the municipal bonds at 6%,
and then he puts the rest in the stock market at 12%.
At the end of the year, he earns $57.85. How much money did he invest altogether?
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He puts of the money at 5%; of the money at 6%, and the rest, which is = at 12%.
Let x be the amount invested at 12%.
Then the amount invested at 6% is 2x, and the amount invested at 5% is 3x.
Now we write the total interest equation
0.05*(3x) + 0.06*(2x) + 0.12*x = 57.85 cents
Simplify and find x
0.15x + 0.12x + 0.12x = 57.85
0.39x = 57.85
x = = 148 .
So, altogether, he invested x + 2x + 3x = 6x = 6 * 148 = 890 dollars. ANSWER
