SOLUTION: Maricopa's Success scholarship fund receives a gift of $ 175000. The money is invested in stocks, bonds, and CDs. CDs pay 5.25 % interest, bonds pay 4.9 % interest, and stocks pay

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Question 1170746: Maricopa's Success scholarship fund receives a gift of $ 175000. The money is invested in stocks, bonds, and CDs. CDs pay 5.25 % interest, bonds pay 4.9 % interest, and stocks pay 10.2 % interest. Maricopa Success invests $ 10000 more in bonds than in CDs. If the annual income from the investments is $ 12707.5, how much was invested in each account?
Answer by ikleyn(52781) About Me  (Show Source):
You can put this solution on YOUR website!
.

Let x = CDs

Then bonds = (x+10000),

     stocks = 175000-x-(x+10000) = 165000-2x.



The total interest equation is

    0.0525x + 0.049*(x+10000) + 0.102*(165000-2x) = 12707.50  dollars.


From this equation,


    x = %2812707.50+-+0.049%2A10000+-+0.102%2A165000%29%2F%280.0525+%2B+0.049+-+0.102%2A2%29 = 45000.



ANSWER.  $45000 in CDs;  $45000 + $10000 = $55000 in bonds; and the rest  175000 - 45000 - 55000 = 75000   dollars in stocks.



CHECK.  0.0525*45000 + 0.049*55000 + 0.102*75000 = 12707.50  dollars the total interest.  ! Precisely correct !

Solved.

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The amazing and unexpected fact is that problem is solved using only one single unknown and one equation.