|
Title: $ 100 comma 000 100,000 in a money market account, a bond fund, an international stock ... Post by: Catracho on Oct 23, 2018 A person plans to invest a total of $100,000 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 4 times the amount in international stocks. Finally, she needs an annual return of $4,000. Assuming she gets annual returns of 25% 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?
Title: Re: $ 100 comma 000 100,000 in a money market account, a bond fund, an international stock ... Post by: bio_man on Oct 23, 2018 Set up your equation as
x + y + z + w = 100 000 0.025x + 0.035y + 0.04z + 0.06w = 4000 z = 4w or z - 4w = 0 x + y = 60 000 So we have 4 equations w = 8000, x = -14 000 y = 74000.0 z = 32000 If you want to see how it's solved, here's a similar example! |