Ana Colon asks her broker to divide her 401K investment of $2000 among the International Fund, the Fixed Assets Fund, and the company stock. She decides that her investment in the International Fund should be twice her investment in company stock. During the first quarter, the International Fund earns 4.5%, the Fixed Assets Fund Earns 2.6%, and the company stock falls 0.2%. At the end of the first quarter, Ms. Colon receives a statement indicating a return of $58 on her investment. How did the broker divide Ms. Colon's initial investment?
i have no clue lol
To determine how the broker divided Ms. Colon's initial investment, we need to set up a system of equations based on the information provided.
Let's assume that the investment in the company stock is x dollars. Since the investment in the International Fund is twice the investment in the company stock, the investment in the International Fund would be 2x dollars.
The total investment is given as $2000, so we have the equation:
x + 2x + (investment in the Fixed Assets Fund) = $2000
Now, let's analyze the returns on each investment:
The International Fund earned 4.5%, so the return on the International Fund investment is (2x)(0.045) = 0.09x dollars.
The Fixed Assets Fund earned 2.6%, so the return on the Fixed Assets Fund investment is (investment in the Fixed Assets Fund)(0.026) = 0.026(investment in the Fixed Assets Fund) dollars.
The company stock fell 0.2%, so the return on the company stock investment is (x)(-0.002) = -0.002x dollars.
The total return is given as $58, so we have the equation:
0.09x + 0.026(investment in the Fixed Assets Fund) - 0.002x = $58
Now, we have a system of two equations:
1. x + 2x + (investment in the Fixed Assets Fund) = $2000
2. 0.09x + 0.026(investment in the Fixed Assets Fund) - 0.002x = $58
We can solve this system of equations to find the values of x and (investment in the Fixed Assets Fund), which represent the investment in the company stock and the investment in the Fixed Assets Fund, respectively.