SOLUTION: Green River Community College's scholarship fund receives a gift of $ 190000. The money is invested in stocks, bonds, and CDs. CDs pay 2.5 % interest, bonds pay 3.6 % interest, and

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Question 1146923: Green River Community College's scholarship fund receives a gift of $ 190000. The money is invested in stocks, bonds, and CDs. CDs pay 2.5 % interest, bonds pay 3.6 % interest, and stocks pay 7.2 % interest. GRCC invests $ 20000 more in bonds than in CDs. If the annual income from the investments is $ 8395 , how much was invested in each vehicle?
GRCC invested $ in stocks.
GRCC invested $ in bonds.
GRCC invested $ in CDs.

Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


(1) Use the given numbers to write an expression for the total amount of interest using a single variable.

Let x = amount in CDs
Then %28x%2B20000%29 = amount in bonds ($20,000 more than in CDs)
And then %28190000-%28x%2B%28x%2B20000%29%29%29+=+170000-2x = amount in stocks (the total $190,000, minus the amounts in CDs and bonds)

interest from CDs: 0.025%28x%29
interest from bonds: 0.036%28x%2B20000%29
interest from stocks: 0.072%28170000-2x%29

(2) Write and solve the equation that says the total interest is $8395:

0.025%28x%29%2B0.036%28x%2B20000%29%2B0.072%28170000-2x%29+=+8395

Basic algebra; although some of the calculations look ugly....

Or, if an algebraic solution is not required, the equation is easily solved using a graphing calculator.

Then, of course, after solving for x, you need to use that value to determine the amounts invested in each place.