SOLUTION: Maricopa's Success scholarship fund receives a gift of $ 210000. The money is invested in stocks, bonds, and CDs. CDs pay 4.5 % interest, bonds pay 4.6 % interest, and stocks pay 7
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Question 1130519: Maricopa's Success scholarship fund receives a gift of $ 210000. The money is invested in stocks, bonds, and CDs. CDs pay 4.5 % interest, bonds pay 4.6 % interest, and stocks pay 7.2 % interest. Maricopa Success invests $ 20000 more in bonds than in CDs. If the annual income from the investments is $ 11420 , 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 = 0.045
Interest = 0.045p
Bonds:
Principal = p + 20000
Rate = 0.046
Interest = 0.046(p + 20000) = 0.046p + 920
Stocks:
Principal = 210000 - p - (p + 20000) = 190000 - 2p
Rate = 0.072
Interest = 0.072(190000 - 2p) = 13680 - 0.144p
Total interest:
(0.045p) + (0.046p + 920) + (13680 - 0.144p) = 11420
Simplify:
-0.053p + 14600 = 11420
-0.053p = -3180
p = 60000
From earlier:
CDs:
Principal = p = 60000
Bonds:
Principal = p + 20000 = 60000 + 20000 = 80000
Stocks:
Principal = 190000 - 2p = 190000 - 120000 = 70000
