SOLUTION: An investor has $100,000 to invest in three types of bonds: short-term, intermediate-term, and long-term. How much should she invest in each type to satisfy the given conditions?

Question 1101518: An investor has $100,000 to invest in three types of bonds: short-term, intermediate-term, and long-term. How much should she invest in each type to satisfy the given conditions?
Short-term bonds pay 4% annually, intermediate-term bonds pay 6%, and long-term bonds pay 8%. The investor wishes to have a total annual return of $6100 on her investment, with equal amounts invested in intermediate- and long-term bonds.

Answer by richwmiller(17219) (Show Source): You can put this solution on YOUR website!
y=z
x+y+z=100,000
x+2y=100,000
x=100,000-2y
.04*x+.06*y+.08*z=6100
.04*x+.06*y+.08*y=6100
.04*(100,000-2y)+.14*y=6100
.04*100,000-2y*.04+.14*y=6100
4000-.08*y+.14*y=6100
.06*y=2100
y=2100/.06
y=35,000 at 6%
z=35,000 at 8%
100000-70000=30
x=30,000 at 4%
check
.04*30000+.06*35000+.08*35000=6100
1200+2100+2800=6100
6100=6100
ok

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