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# Solve the word problem

Sachi has \$28,000 to invest. Her financial planner suggests that she diversify her investment into three investment categories. Treasury bills that yield 3% simple interest annually, municipal bonds that yield 5% simple interest annually, and corporate bonds that yield 9% simple interest annually. Sachi would like to earn \$1380 per year in income. In addition, Sachi wants her investment in Treasury bills to be \$7000 more than her investment in corporate bonds. How much should Sachi invest in each investment category?

### 1 Answer by Expert Tutors

Jenny L. | patient and passionate maths tutorpatient and passionate maths tutor
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Assume she invest \$x in corporate bonds

she invests in:
corporate bond: \$x
T-bills: \$(x+7000)
muni bonds: \$(28000-x-(x+7000))

After 1 year, the income is:
corporate bond: 9%*x
T-bills: 3%*(x+7000)
muni bonds: 5%*(28000-x-(x+7000))

Total income=9%*x+3%*(x+7000)+5%*(28000-x-(x+7000)) =1380

x=6000

corporate bond: \$6000
T-bills: \$13000
muni bonds: \$9000