Alan invests a total of $15,000 in three different ways. He invests one part in

Question

Alan invests a total of $15,000 in three different ways. He invests one part in a mutual fund which in the first year has a return of 11%. He invests the second part in a government bond at 7% per year. The third part he puts in the bank at 5% per year. He invests twice as much in the mutual fund as in the bank. The first year Alan's investments bring a total return of $1290. How much did he invest in each way?

a)mutual fund: $8600; bond: $2100; bank: $4300

b)mutual fund:$7400; bond: $3900; bank: $3700

c)mutual fund: $8000; bond: $3000; bank $4000

d)mutual fund: $8000; bond:$4000;bank: $4000

Explanation / Answer

c)mutual fund: $8000; bond: $3000; bank $4000

ie., (8000*0.11)+(3000*0.07)+(4000*0.05) = 1290

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.