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Question 813466: Katherine Chong invests $10,000 received from her grandmother in 3 ways. With one part, she buys U.S. savings bonds at an interest rate of 2.5% per year. She uses the second part, which amounts to twice the first, to buy mutual funds that offer a return of 6% per year. She puts the rest of the money into a money market account paying 4.5% annual interest. The first year her investments bring a return of $470. How much did she invest in each way.
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! Katherine Chong invests $10,000 received from her grandmother in 3 ways. With one part, she buys U.S. savings bonds at an interest rate of 2.5% per year. She uses the second part, which amounts to twice the first, to buy mutual funds that offer a return of 6% per year. She puts the rest of the money into a money market account paying 4.5% annual interest. The first year her investments bring a return of $470. How much did she invest in each way.
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let x=amount invested in savings bonds at 2.5%
2x=amount invested in mutal funds at 6%
10000-3x=amount invested in money market acount at 4.5%
..
2.5%x+6%*2x+4.5%(10000-3x)=470
.025x+.12x+450-0.135x=470
.01x=20
x=2000
2x=4000
10000-3x=4000
..
amount invested in savings bonds=$2000
amount invested in mutal funds=$4000
amount invested in money market acount=$4000
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