Question 324441: You were left a small inheritance by your Grandmother. Her will stipulates that you invest 1/4 of the money in stocks, 1/4 of the money in bonds, and 1/2 of the money in U.S. Treasury Bills. Stocks pay 4% interest annually, bonds pay 8% interest annually, and U.S. Treasury Bills pay 2% interest annually. If your total annual interest on the three investments is $4000, how much did you inherit?
Answer by graphmatics(170)   (Show Source):
You can put this solution on YOUR website! Let x be the small inheritance, then x/4 is the money invested in stocks and .04*x/4 is the stocks interest, x/4 is the money in bonds and .08*x/4 is the bonds interest, x/2 is the money in Treasury Bills and .02*x/2 is the interest from Treasury Bills. All three of the interest add up to $4000 so:
.04*x/4 + .08*x/4 + .02*x/2 = 4000
.04*x/4 + .08*x/4 + .02*x*2/2*2 - 4000
.04*x/4 + .08*x/4 + .04*x/4 = 4000
(.04 + .08 + .04)*x/4 = 4000
.16*x/4 = 4000
x = 4000*4/.16
x = 16000/.16
x = 100000
So the amount of the inheritance is $100000.
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