Country Day invested in stocks. Country Day invested in bonds. Country Day invested in CDs.

Question

Country Day's scholarship fund receives a gift of $ 195000. The money is invested in stocks, bonds, and CDs. CDs pay 3.5 % interest, bonds pay 3.1 % interest, and stocks pay 8.3 % interest. Country day invests $ 25000 more in bonds than in CDs. If the annual income from the investments is $ 9885 , how much was invested in each vehicle?

Answer 1

2C + S = 170000 Call this Equation A

Sub the first equation (value of B) into the third: .035C +.031(25000+C) + .083S = 9885

.035C + .031C + 775 + .083S = 9885

.066C + .083S = 9110 Call this Equation B

Multiply A by -.083

-.166C - .083S = -14110

Add to B

-.1C = -5000

C = 50000

B = C + 25000 = 50000 + 25000 = 75000

C + B + S = 195000 = 125000 + S

70000 = S