Problema Solution
Wanda invested one-half of her lottery winnings in a corporate bond that returned 8% after 1 year, one-fourth in a mutual fund that returned 3% after 1 year, and put the rest in a CD that returned 4% after 1 year. If the total income on the investments after 1 year was $5750, then what was the amount of her lottery winnings?
Answer provided by our tutors
let 'x' represent the amount of her lottery winnings, then 'x/2' represents the amount invested at 8%, 'x/4' represents the amount invested at 3%, and 'x-x/2-x/4' represents the amount invested at 4%
interest = principal * rate * time
time = 1 year
x-x/2-x/4 = x/4
5750 = 0.08(x/2) + 0.03(x/4) + 0.04(x/4)
solving for 'x' we have x=100000
her lottery winnings were $100,000