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John inherited $25000 and invested part of it in a money market account, part in municipal bonds, and part in a mutual fund. After one year, he received a total of $ 1620 in simple interest from the three investments. The money market paid 6% annually, the bonds paid 7% annually, and the mutual funds paid 8% annually. There was $ 6000 more invested in the bonds than the mutual funds. The amount John invested in each category are in the ratio:
  • a)
    15 : 8 : 2
  • b)
    11 : 13 : 1
  • c)
    2 : 2 : 1
  • d)
    None of these
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
John inherited $25000 and invested part of it in a money market accoun...
Let
x = The amount of money invested in the money market account.
y = The amount of money invested in municipal bonds.
z = The amount of money invested in a mutual fund.
 
x+y+z = 25000    (1)
0.06x+0.07+0.08z = 1620  (2)
y-z = 6000   (3)
 
solve for x, y and z using any method from substitution, elimination or cross multiplication
 
 Answer is  $15,000 is invested in the monkey market account, $8,000 is invested in the municipal bonds, and $2,000 is invested in mutual funds. 
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John inherited $25000 and invested part of it in a money market accoun...
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John inherited $25000 and invested part of it in a money market accoun...
Given: John inherited $25000 and invested part of it in a money market account, part in municipal bonds, and part in a mutual fund. After one year, he received a total of $ 1620 in simple interest from the three investments. The money market paid 6% annually, the bonds paid 7% annually, and the mutual funds paid 8% annually. There was $ 6000 more invested in the bonds than the mutual funds. The amount John invested in each category are in the ratio:

To Find: The ratio in which John invested in each category.

Solution:

Let's assume that John invested x dollars in the money market account, y dollars in municipal bonds, and z dollars in the mutual fund.

As per the given information, we have:

Total investment = x+y+z = $25000 ----(1)

Interest earned from money market account = 6% of x = 0.06x

Interest earned from municipal bonds = 7% of y = 0.07y

Interest earned from mutual funds = 8% of z = 0.08z

Total interest earned = $1620

Therefore,

0.06x + 0.07y + 0.08z = $1620 ----(2)

Also given, y - z = $6000 ----(3)

From equation (1), we have x = $25000 - y - z

Substituting the value of x in equation (2), we get:

0.06($25000 - y - z) + 0.07y + 0.08z = $1620

1500 - 0.06y - 0.06z + 0.07y + 0.08z = $1620

Simplifying the above equation, we get:

0.02y - 0.02z = $60

Dividing by 0.02 on both sides, we get:

y - z = $3000

Comparing with equation (3), we have:

y - z = $6000

$3000 = $6000 - $3000

Therefore, our assumption that y - z = $6000 is incorrect.

Let's assume that z - y = $6000

Substituting the value of z - y in equation (1), we get:

x + 2y = $31000 ----(4)

Substituting the value of x in equation (2), we get:

0.06($25000 - y - z) + 0.07y + 0.08z = $1620

1500 - 0.06y - 0.06z + 0.07y + 0.08z = $1620

Simplifying the above equation, we get:

0.01y + 0.02z = $30

Multiplying by 100 on both sides, we get:

y + 2z = $3000 ----(5)

Solving equations (4) and (5), we get:

x = $9000

y = $6000

z = $10000

Therefore, John invested $9000 in the money market account, $6000 in municipal bonds, and $10000 in the mutual fund.

The ratio in which John invested in each category is:

Money market: Municipal bonds: Mutual
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John inherited $25000 and invested part of it in a money market account, part in municipal bonds, and part ina mutual fund. After one year, he received a total of $ 1620 in simple interest from the three investments. The moneymarket paid 6% annually, the bonds paid 7% annually, and the mutual funds paid 8% annually. There was $ 6000more invested in the bonds than the mutual funds. The amount John invested in each category are in the ratio:a)15 : 8 : 2b)11 : 13 : 1c)2 : 2 : 1d)None of theseCorrect answer is option 'A'. Can you explain this answer?
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John inherited $25000 and invested part of it in a money market account, part in municipal bonds, and part ina mutual fund. After one year, he received a total of $ 1620 in simple interest from the three investments. The moneymarket paid 6% annually, the bonds paid 7% annually, and the mutual funds paid 8% annually. There was $ 6000more invested in the bonds than the mutual funds. The amount John invested in each category are in the ratio:a)15 : 8 : 2b)11 : 13 : 1c)2 : 2 : 1d)None of theseCorrect answer is option 'A'. Can you explain this answer? for Class 10 2024 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about John inherited $25000 and invested part of it in a money market account, part in municipal bonds, and part ina mutual fund. After one year, he received a total of $ 1620 in simple interest from the three investments. The moneymarket paid 6% annually, the bonds paid 7% annually, and the mutual funds paid 8% annually. There was $ 6000more invested in the bonds than the mutual funds. The amount John invested in each category are in the ratio:a)15 : 8 : 2b)11 : 13 : 1c)2 : 2 : 1d)None of theseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 10 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for John inherited $25000 and invested part of it in a money market account, part in municipal bonds, and part ina mutual fund. After one year, he received a total of $ 1620 in simple interest from the three investments. The moneymarket paid 6% annually, the bonds paid 7% annually, and the mutual funds paid 8% annually. There was $ 6000more invested in the bonds than the mutual funds. The amount John invested in each category are in the ratio:a)15 : 8 : 2b)11 : 13 : 1c)2 : 2 : 1d)None of theseCorrect answer is option 'A'. Can you explain this answer?.
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