Wendy has 16000 she opted to invest some money in a privatel

Wendy has $16,000 she opted to invest some money in a privately held company that pays 10% per year and evenly split the remaining money between a market account yielding 2% and a high risk stock that yielded 40%. at the end of the first year she had $19,140 total how much did she invest in each of the three?

Given :

P = private investment

M = money market investment

S = stock investment

we know that:

P + M + S = $16,000

we also know that M and S are equal amounts. So, we can re-write the above equation to:

P + 2M = $16,000

Now, we can also calculate the total first year\'s interest:

$19,140 - $16,000 = $ 3,140 total interest

The equation to calculate that interest would be:

(P x 10%) + (M x 2%) + (S x 40%) = $ 3140

Since we know that M and S are equal, another way to write this equation is:

(P x 10%) + (M x 42%) = $ 3140

(M x 2%) + (S x 40%) is the same as (M x 42%)

So, now this is the equation we want to solve for:

(P x 10%) + (M x 42%) = $ 3140

However, we have two variables, P and M, which makes it pretty tough to solve. You want to narrow it down to one variable. How? Well, if you look at the re-write of the first equation (P + 2M = 16,000), we can re-arrange it so that:

P = 16,000 - 2M

Now we can substitute this into the equation you want to solve, like this:

(P x 10%) + (M x 42%) = $ 3140

[(16,000 - 2M) x 10%] + (M x 42%) = $ 3140

1600 - 0.2M + 0.42M = 3140

0.22 M = 3140 - 1600

0.22M = 1540

M = 1540/0.22

Hence, M = 7000

So, now we know that M is $ 7000. Since S is equal to M,

Hence, S is $ 7000.

And since P = 16,000 - 2M

Hence, P = 16000 - 2( 7000 )

p = 16000 - 14000

Hence, P = $ 2000 [ Answer ]

Wendy has $16,000 she opted to invest some money in a privately held company that pays 10% per year and evenly split the remaining money between a market accou

Wendy has 16000 she opted to invest some money in a privatel

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