A few days ago
A fund has a total of $1 million invested in the Stock of ABC Co and the bonds of DEF co. The ABC stock yields
12% in cash each year, the DEF 10% in cash each year. The fund received a total of $115,000 in cash from ABC stock and DEF bonds last year. How much money was invested in teh ABC stock?
Top 1 Answers
A few days ago
Favorite Answer
Let the cost of stock of ABC CO = s & cost of bonds of DEF CO = b,
Priniciple = s + b
= s + (1000000 – s)
=$1 million
Therefore,
0.12s + 0.10(1000000 – s) = 115 000
0.12s + 0.10s + 10 000 = 115 000
0.32s = 115 000 – 10 000
=105 000
s = 105 000 / 0.32
= 328 125
Amt of money invested to Stock of ABC Co = $328 125.
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