Problema Solution

Country Day's scholarship fund receives a gift of $ 230000. The money is invested in stocks, bonds, and CDs. CDs pay 5.25 % interest, bonds pay 5.8 % interest, and stocks pay 6.4 % interest. Country day invests $ 10000 more in bonds than in CDs. If the annual income from the investments is $ 13260 , how much was invested in each vehicle?

Answer provided by our tutors

the money invested in CDs is $80000, the Bonds is $90000, the Stocks is $60000

 

Solution: Set the money invested in CDs is X

               So Bonds is X+10000,   Stocks is 230000-(X+X+10000)

               ( X ) x 5.25% + (X+10000) x 5.8% + (220000-2X ) x 6.4% =$13260

               X = 80000,  

So the money invested in CDs is $80000, the Bonds is $90000, the Stocks is $60000