Problema Solution
Country Day's scholarship fund receives a gift of $ 100000. The money is invested in stocks, bonds, and CDs. CDs pay 6 % interest, bonds pay 2.8 % interest, and stocks pay 10.5 % interest. Country day invests $ 25000 more in bonds than in CDs. If the annual income from the investments is $ 5525 , how much was invested in each vehicle?
Answer provided by our tutors
Let
x = the amount invested in CD's at 6% interest
y = the amount invested in bonds at 2.8% interest
z = the amount invested in stocks at 10.5% interest
x + y + z = 100000
0.06x + 0.028y + 0.105z = 5525
y = 25000 + x
........
click here to see the system of equations solved for x, y and z
........
x = $25,000
y = $50,000
z = $25,000
$25,000 were invested in CDs, $50,000 were invested in bonds and $25,000 were invested in stocks.