Pierre inherited $ 120 , 000 from his uncle and decided to invest the money. He put part of the money in a money market account that earns 2.2 % simple interest. The remaining money was invested in a stock that returned 6 % in the first year and a mutual fund that lost 2 % in the first year. He invested $ 10 , 000 more in the stock than in the mutual fund, and his net gain for 1 yr was $ 2820. Determine the amount invested in each account.
Pierre inherited $ 120 , 000 from his uncle and decided to invest the money. He put part of the money in a money market account that earns 2.2 % simple interest. The remaining money was invested in a stock that returned 6 % in the first year and a mutual fund that lost 2 % in the first year. He invested $ 10 , 000 more in the stock than in the mutual fund, and his net gain for 1 yr was $ 2820. Determine the amount invested in each account.
Solution Summary: The author calculates the amount invested in each account based on the data provided.
Pierre inherited
$
120
,
000
from his uncle and decided to invest the money. He put part of the money in a money market account that earns
2.2
%
simple interest. The remaining money was invested in a stock that returned
6
%
in the first year and a mutual fund that lost
2
%
in the first year. He invested
$
10
,
000
more in the stock than in the mutual fund, and his net gain for
1
yr
was
$
2820.
Determine the amount invested in each account.
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