Problema Solution
a company placed $1,000,000 in three different accounts. it placed part in short-term notes paying 4.5% per year, twice as much in government bonds paying 5%, and the rest in utility bonds paying 4%. The income after one year was $45,500. how much did the company place in each account?
Answer provided by our tutors
let
x = the money put on short-term notes paying 4.5% per year, x>0
2x = the money put on government bonds paying 5%
1,000,000 - (x + 2x) = the rest on the money put on utility bonds paying 4%
the income after one year was $45,500:
0.045x + 0.05*2x + 0.04*(1,000,000 - (x + 2x)) = 45,500
by solving we find:
x = $220,000
click here to see the step by step solution of the equation:
2x = 2*220,000 = $440,000
1,000,000 - (220,000 + 440,000) = $340,000
the compnay placed $220,000 on short-term notes, $440,000 on government bonds and $340,000 on utility bonds.