Question

Can I get help asap please!

Devon invested $8000 in three different mutual funds. A fund containing large cap stocks made a 6.4% return in 1 yr. A real estate fund lost 11.4% in 1 yr, and
a bond fund made 3.4% in 1 yr. The amount invested in the large cap stock fund was twice the amount invested in the real estate fund. If Devon had a net return of $140 across all investments, how much did he invest in each fund?

Answer 1

Answer: Let x be the amount invested in the real estate fund. Then the amount invested in the large cap stock fund is 2x, and the amount invested in the bond fund is 8000 - 3x.

The net return from the real estate fund is -0.114x, the net return from the large cap stock fund is 0.064(2x) = 0.128x, and the net return from the bond fund is 0.034(8000 - 3x) = 272 - 0.102x.

The total net return is the sum of these, so we have the equation:

-0.114x + 0.128x + 272 - 0.102x = 140

Simplifying and solving for x, we get:

0.012x = 168

x = 14000

So Devon invested $14000 in the real estate fund, $28000 in the large cap stock fund, and $38000 in the bond fund.

Explanation: