If the annual income from the investments is $ 8660 , how much was invested in each account?

Question

Maricopa's Success scholarship fund receives a gift of $ 140000. The money is invested in stocks, bonds, and CDs. CDs pay 5.5 % interest, bonds pay 6 % interest, and stocks pay 6.8 % interest. Maricopa Success invests $ 55000 more in bonds than in CDs. If the annual income from the investments is $ 8660 , how much was invested in each account?

Answer 1

S + B + C = 140,000

.068S + .06B + .055C = 8,660

B = 55,000+ C

3 equations 3 unknowns, use substitution and elimination

S = 140,000 - B- C = 140,000 - (55,000 -C) -C = 85,000-2C

.068(85,000-2C) + .06(55,000 + C) + .055C = 8,660

5780 - .136C + 3300 + .06C + .055C = 8,660

(-.136+.06+.055)C = 8,660- 3,300-5,780

-.021C = - 420

C= 420/.021 =20/.001 = $20,000 invested in CD's

B=55,000 + 20,000 = $75,000 in bonds

S = 85,000 -2(20,000) = $45,000 in stocks

C=$20,000, B = $70,000, S =$45,000

S+B+C = 20,000+75,000+45,000 = 140,000