Maricopa's Success scholarship fund receives a gift of $195000 .

Question

Maricopa's Success scholarship fund receives a gift of $ 195000. The money is invested in stocks, bonds, and CDs. CDs pay 2 % interest, bonds pay 4.4 % interest, and stocks pay 11.9 % interest. Maricopa Success invests $ 15000 more in bonds than in CDs. If the annual income from the investments is $ 9030 , how much was invested in each account?

Maricopa Success invested $    in stocks.

Maricopa Success invested $    in bonds.

Maricopa Success invested $    in CDs.

Answer 1

First, let's write down what we know, and then look for ways we can substitute information to solve an equation:

Let x=amount invested in bonds, then we know that

x-15,000= amount invested in CD's.

Since the total gift is 195,000, we can express the amount invested in stocks as: 195,000-[(x)-(x-150,00)].

which simplifies to 195,000-x-x+15,000= 195,000-2x+15,000=210,000=2x.

We also know how much each type of investment yields, and that the total yield=9,030, from that information, we can construct the following equation:

x(4.4)+(x-15,000)2+(195,000+2x)11.9=9,030, which can be simplified to

4.5x+2x-30,000++2,320,500+23.8x+1,993,500=9,030

To finish the problem, I can't do all the work for you:

Now, you can solve this equation for x, which we defined as the amount we invested in bonds, and then put that value in the equations & solve for the amount invested in CD's and stocks.

Then, as a quick & easy check: add those 3 numbers, they should=total gift of 195,000!

Good luck!

Answer 2

Asked and answered.