Question 1078631: A $136, 000 trust is to be invested in bonds paying 8%, CDs paying 7%, and mortgages paying 10%. The sum of the investments in bonds and CDs must equal the mortgage investment. To earn $12,040 annual income from the investments, how much should the bank invest in bonds?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A $136,000 trust is to be invested in bonds paying 8%, CDs paying 7%, and mortgages paying 10%. The sum of the investments in bonds and CDs must equal the mortgage investment. To earn $12,040 annual income from the investments, how much should the bank invest in bonds?
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Equations::
B + C + M = 136000
8B+7C+10M = 1204000
B + C - M = 0
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Use any method you know to find that
B = 48000 (amt for Bonds)
C = 20000
M = 68000
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Cheers,
Stan H.
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