for investment or economic

Question

Dylan invests $15,000 in three different stocks. One stock is very risky and after 1 yr loses 8%. The second stock returns 3.2%, and a third stock returns 5.8%. At the end of 1 yr, the total return is $274. If he invested $2000 more in the second stock than in the third stock, determine the amount he invested in each stock.

Answer 1

x+y+z=15000

-.08x +.032y+.058z= 274

y=z+2000

x= 15000-z-y = 15000-z-z-2000= -2z+13000

-.08(-2z+13000)+.032(z+2000)+.058z=274

.16z-1040 +.032z +64+.058z = 274

.24z = 274-64 +1040=1250

z=125000/24= 31250/6= $5,208.33 1/3 invested at the best stock

y=$7,208.33 1/3 invested at the 3.2% stock

x=15000-12416.66 2/3= $2,583.331/3 invested at the losing stock