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Example 2 Investment Chapter 7.2 The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk.

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Presentation on theme: "Example 2 Investment Chapter 7.2 The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk."— Presentation transcript:

1 example 2 Investment Chapter 7.2 The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund?  2009 PBLPathways

2 The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund?

3  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund? x: Amount invested in the Potus Fund y: Amount invested in the Stong Fund z: Amount invested in the Franklin Fund

4  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund? x: Amount invested in the Potus Fund y: Amount invested in the Stong Fund z: Amount invested in the Franklin Fund

5  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund? x: Amount invested in the Potus Fund y: Amount invested in the Stong Fund z: Amount invested in the Franklin Fund Sum of the investments Total annual return

6  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund? x: Amount invested in the Potus Fund y: Amount invested in the Stong Fund z: Amount invested in the Franklin Fund Sum of the investments Total annual return

7  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund? x: Amount invested in the Potus Fund y: Amount invested in the Stong Fund z: Amount invested in the Franklin Fund Sum of the investments Total annual return

8  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund? x: Amount invested in the Potus Fund y: Amount invested in the Stong Fund z: Amount invested in the Franklin Fund Total annual return

9  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund? x: Amount invested in the Potus Fund y: Amount invested in the Stong Fund z: Amount invested in the Franklin Fund

10  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund? x: Amount invested in the Potus Fund y: Amount invested in the Stong Fund z: Amount invested in the Franklin Fund

11  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund? x: Amount invested in the Potus Fund y: Amount invested in the Stong Fund z: Amount invested in the Franklin Fund

12  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund? x: Amount invested in the Potus Fund y: Amount invested in the Stong Fund z: Amount invested in the Franklin Fund

13  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund?

14  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund?

15  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund?

16  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund?

17  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund?

18  2009 PBLPathways The Trust Department of Century Bank divided a $150,000 investment among three mutual funds with different levels of risk and return. The Potus Fund returns 10% per year, the Stong Fund returns 8% per year, and the Franklin Fund returns 7%. If the annual return from the combined investments is $12,900 and if the investment in the Potus Fund has $20,000 less than the sum of the investments in the other two funds, how much is invested in each fund?

19  2009 PBLPathways -0.10 R1 + R2  R2 - R1 + R3  R3 -50 R2  R2 - R2 + R1  R1 2R2 + R3  R3

20  2009 PBLPathways -0.10 R1 + R2  R2 - R1 + R3  R3 -50 R2  R2

21  2009 PBLPathways -0.10 R1 + R2  R2 - R1 + R3  R3 -50 R2  R2

22  2009 PBLPathways -0.10 R1 + R2  R2 - R1 + R3  R3 -50 R2  R2

23  2009 PBLPathways -0.10 R1 + R2  R2 -1 R1 + R3  R3 -50 R2  R2

24  2009 PBLPathways -0.10 R1 + R2  R2 -1 R1 + R3  R3 -50 R2  R2

25  2009 PBLPathways -0.10 R1 + R2  R2 -1 R1 + R3  R3 -50 R2  R2

26  2009 PBLPathways -0.10 R1 + R2  R2 -1 R1 + R3  R3 -50 R2  R2

27  2009 PBLPathways -0.10 R1 + R2  R2 -1 R1 + R3  R3 -50 R2  R2

28  2009 PBLPathways 0.5 R3 + R1  R1 -1.5 R3 + R2  R2 Invest $65,000 in the Potus Fund Invest $45,000 in the Stong Fund Invest $40,000 in the Franklin Fund - R2 + R1  R1 2R2 + R3  R3

29  2009 PBLPathways 0.5 R3 + R1  R1 -1.5 R3 + R2  R2 Invest $65,000 in the Potus Fund Invest $45,000 in the Stong Fund Invest $40,000 in the Franklin Fund -1 R2 + R1  R1 2R2 + R3  R3

30  2009 PBLPathways 0.5 R3 + R1  R1 -1.5 R3 + R2  R2 Invest $65,000 in the Potus Fund Invest $45,000 in the Stong Fund Invest $40,000 in the Franklin Fund -1 R2 + R1  R1 2R2 + R3  R3

31  2009 PBLPathways 0.5 R3 + R1  R1 -1.5 R3 + R2  R2 Invest $65,000 in the Potus Fund Invest $45,000 in the Stong Fund Invest $40,000 in the Franklin Fund -1 R2 + R1  R1 2R2 + R3  R3

32  2009 PBLPathways 0.5 R3 + R1  R1 -1.5 R3 + R2  R2 Invest $65,000 in the Potus Fund Invest $45,000 in the Stong Fund Invest $40,000 in the Franklin Fund -1 R2 + R1  R1 2R2 + R3  R3

33  2009 PBLPathways 0.5 R3 + R1  R1 -1.5 R3 + R2  R2 Invest $65,000 in the Potus Fund Invest $45,000 in the Stong Fund Invest $40,000 in the Franklin Fund -1 R2 + R1  R1 2R2 + R3  R3

34  2009 PBLPathways 0.5 R3 + R1  R1 -1.5 R3 + R2  R2 Invest $65,000 in the Potus Fund Invest $45,000 in the Stong Fund Invest $40,000 in the Franklin Fund -1 R2 + R1  R1 2R2 + R3  R3

35  2009 PBLPathways 0.5 R3 + R1  R1 -1.5 R3 + R2  R2 Invest $65,000 in the Potus Fund Invest $45,000 in the Stong Fund Invest $40,000 in the Franklin Fund -1 R2 + R1  R1 2R2 + R3  R3

36  2009 PBLPathways 0.5 R3 + R1  R1 -1.5 R3 + R2  R2 Invest $65,000 in the Potus Fund Invest $45,000 in the Stong Fund Invest $40,000 in the Franklin Fund -1 R2 + R1  R1 2R2 + R3  R3

37  2009 PBLPathways 0.5 R3 + R1  R1 -1.5 R3 + R2  R2 Invest $65,000 in the Potus Fund Invest $45,000 in the Stong Fund Invest $40,000 in the Franklin Fund -1 R2 + R1  R1 2R2 + R3  R3

38  2009 PBLPathways 0.5 R3 + R1  R1 -1.5 R3 + R2  R2 Invest $65,000 in the Potus Fund Invest $45,000 in the Stong Fund Invest $40,000 in the Franklin Fund -1 R2 + R1  R1 2R2 + R3  R3

39  2009 PBLPathways 0.5 R3 + R1  R1 -1.5 R3 + R2  R2 Invest $65,000 in the Potus Fund Invest $45,000 in the Stong Fund Invest $40,000 in the Franklin Fund -1 R2 + R1  R1 2R2 + R3  R3


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