SOLUTION: Maricopa's Success scholarship fund receives a gift of $ 170000. The money is invested in stocks, bonds, and CDs. CDs pay 3.25 % interest, bonds pay 4.3 % interest, and stocks pay
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Question 1130528: Maricopa's Success scholarship fund receives a gift of $ 170000. The money is invested in stocks, bonds, and CDs. CDs pay 3.25 % interest, bonds pay 4.3 % interest, and stocks pay 6.5 % interest. Maricopa Success invests $ 30000 more in bonds than in CDs. If the annual income from the investments is $ 7392.50, how much was invested in each account?
Answer by VFBundy(438) (Show Source): You can put this solution on YOUR website!
CDs:
Principal = p
Rate = 0.0325
Interest = 0.0325p
Bonds:
Principal = p + 30000
Rate = 0.043
Interest = 0.043(p + 30000) = 0.043p + 1290
Stocks:
Principal = 170000 - p - (p + 30000) = 140000 - 2p
Rate = 0.065
Interest = 0.065(140000 - 2p) = 9100 - 0.13p
Total interest:
(0.0325p) + (0.043p + 1290) + (9100 - 0.13p) = 7392.50
Simplify:
-0.0545p + 10390 = 7392.50
-0.0545p = -2997.50
Solve for p:
p = 55000
From earlier:
CDs:
Principal = p = 55000
Bonds:
Principal = p + 30000 = 55000 + 30000 = 85000
Stocks:
Principal = 140000 - 2p = 140000 - 110000 = 30000
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