High-Risk funds

[angel716]

Of the 50,000.00 that Natasha pocketed on her last real estate deal, 20,000.00 went to charity. She invested part of the remainder in Dreyfus New Leaders Fund with an annual
yield of 16% and the rest in Templeton Growth Fund with an annual yield of 25%. If she made $6060 o these investments in 1 year, then how much did she invest in each fund?

So many people have given me different answers in my class and I just want to know what I would get off this site. Thank you I greatly appreciate!

 

[arthur ohlsten]

amount invested $30,000
x invested in Dreyfu
30000-x in templeton\

Profit = x[ .16] + [30000-x][.25]
but profit = 6060

6060= .16x + 7500-.25x
.09x=1440
x=$16000
$16000 in dreyfus
$14000 in templeton
Arthur

 

[angel716]

oh I see now I was off on the percents I don't know how I could have but thank you so much for your response it gives me a better understanding and its not has long and drawn out

 

[mmm4444bot]

… So many people have given me different answers in my class and I just want to know what I would get off this site …

oh I see now I was off on the percents I don't know how I could have …

I looked over your posts at this site. You have yet to show any work.

In the future, if you show us what you've actually done, and say something about WHY you're stuck, then that's the quickest way for us to show you what you're doing wrong.

 

[angel716]

I took 50 k minus 20k = 30k which divided by two charities I got 15k to take the % .16 with Dreyfus and .25 with templeton
now take $6060 x 12=72,720 which was to show annually how the investment would go for both charities 72,720/2

36,360x.16=5,817.60 for Dreyfus
36,360 x .25=9,090

that is what I have but just coming here to get to know if the calculations i use it correct or if it could be explained better.

 

[Denis]

36,360x.16=5,817.60 for Dreyfus
36,360 x .25=9,090

angel, slow down and think a bit!

You have 5817.60 + 9090 = 14907.60 ; BUT the problem CLEARLY states that should be 6060:
so your 2 amounts MUST add to 6060 : kapish?

Did you read and UNDERSTAND Arthur's answer?

 

[mmm4444bot]

I took 50 k minus 20k = 30k << This is a good start.

which divided by two charities I got 15k to take the % .16 with Dreyfus and .25 with templeton << This is not correct.

You split the 30k in half, with one half invested at 16% and the other half invested at 25%.

The exercise does not tell us that half the 30k was invested at each percent; in fact, these two investment amounts are what you're supposed to find in this exercise.

now take $6060 x 12=72,720 which was to show annually how the investment would go for both charities 72,720/2 << You misunderstand.

When they say that the amount earned is $6,060, they mean for the whole year. Do not multiply this earning by 12.

36,360x.16=5,817.60 for Dreyfus << This equation states that you're now thinking $36,360 was invested at 16%. But you already stated that $15,000 was invested. :?

Part of the 30k is invested at 16%. We do not know how much. This exercise asks us to find out how much.

Arthur chose to let the symbol x represent the unknown amount invested at 16%.

If we invest x dollars of the 30k at 16%, then the rest of the 30k is invested at 25%.

We write the expression (30000 - x) to represent the rest of the 30k invested at 25%.

Does this make sense, so far?

The total amount of interest earned on both investments after one year is $6,060.

This means that the interest from the 16% investment plus the interest from the 25% investment add up to 6060.

Arthur set up the equation for you:

0.16x + 0.25(30000 - x) = 6060

Solve this equation to find the amount invested at 16% (because that's what x stands for).

Subtract that amount from 30000 to find the amount invested at 25%.

If I wrote anything that you do not understand, then please ask specific questions.

 

[angel716]

Denis I did when I re-did it I forgot to write how I got my answer though as one of the monitors had stated so I put up my answer and arthur's answer was before mine I just placed it there because we one it was needed and I thought I was in the zone obviously i wasn't and took the time to write it in my example booklet for future math courses. I think I rushed through it because of a previous answer I had corrected so I thought this one would be a piece of cake obviously for someone of my stature I shouldn't do that anymore. :?: