Jason receives an inheritance of $50,000. His financial advisor suggests that he invest this in three mutual funds: a money-market fund, a blue-chip stock fund, and a high- tech stock fund. The advisor estimates that the money-market fund will return 5% over the next year, the blue-chip fund 9%, and the high-tech fund 16%. Jason wants a total first-year return of $4000. To avoid excessive risk, he decides to invest three times as much in the money-market fund as in the high-tech stock fund. How much should he invest in each fund?

Jason receives an inheritance of $50,000. His financial advisor suggests that he invest this in three mutual funds: a money-market fund, a blue-chip stock fund, and a high- tech stock fund. The advisor estimates that the money-market fund will return 5% over the next year, the blue-chip fund 9%, and the high-tech fund 16%. Jason wants a total first-year return of $4000. To avoid excessive risk, he decides to invest three times as much in the money-market fund as in the high-tech stock fund. How much should he invest in each fund?

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

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