SOLUTION: Maricopa's Success scholarship fund receives a gift of $ 170000. The money is invested in stocks, bonds, and CDs. CDs pay 3.25 % interest, bonds pay 4.3 % interest, and stocks pay

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Question 1130774: Maricopa's Success scholarship fund receives a gift of $ 170000. The money is invested in stocks, bonds, and CDs. CDs pay 3.25 % interest, bonds pay 4.3 % interest, and stocks pay 6.5 % interest. Maricopa Success invests $ 30000 more in bonds than in CDs. If the annual income from the investments is $ 7392.5 , how much was invested in each account?

Answer by greenestamps(13203) About Me  (Show Source):
You can put this solution on YOUR website!


We are told that the amount invested in bonds is $30000 more than the amount invested in CDs. So

let x = amount invested in CDS
then x+30000 = amount invested in bonds.

The amount invested in stocks is what is left of the total investment of $140000:

then 1400000-(x+x+30000) = 110000-2x is the amount invested in stocks.

The total income from the investments, at the given rates, is $7392.50:

.0325%28x%29%2B.043%28x%2B30000%29%2B.065%28140000-2x%29+=+7392.5

That is a straightforward linear equation in x; but the numbers are rather ugly. If I were allowed to solve the problem by any means, I would graph the two expressions on either side of the equation on a graphing calculator and find the value of x where the graphs intersect; then of course use that value to find the amounts invested in each account.