Question 1198422: Maricopa's Success scholarship fund receives a gift of $ 145000. The money is invested in stocks, bonds, and CDs. CDs pay 4 % interest, bonds pay 5.7 % interest, and stocks pay 10.7 % interest. Maricopa Success invests $ 25000 more in bonds than in CDs. If the annual income from the investments is $ 11340 , how much was invested in each account?
Answer by ikleyn(52879)   (Show Source):
You can put this solution on YOUR website! .
Maricopa's Success scholarship fund receives a gift of $ 145000.
The money is invested in stocks, bonds, and CDs.
CDs pay 4 % interest, bonds pay 5.7 % interest, and stocks pay 10.7 % interest.
Maricopa Success invests $ 25000 more in bonds than in CDs.
If the annual income from the investments is $ 11340 , how much was invested in each account?
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Let x be the amount invested in CDs at 4%.
Then the amount invested in bonds is (x+25000) dollars, according to the problem.
The amount invested at 10.7% is the rest (145000 - x - (x+25000)) = 120000-2x dollars.
Next write the total interest equation
0.04x + 0.057(x+25000) + 0.107*(120000-2x) = 11340 dollars.
Simplify and find x
0.04x + 0.057x - 0.107*(2x) = 11340 - 0.057*25000 - 0.107*120000
-0.117x = - 29255
x =  = 25000.
ANSWER. $25000 was invested at CD (at 4%); $25000+$25000 = $50000 was invested in bonds at 5.7%
and the rest 145000-75000 = 70000 dollars were invested in stocks (at 10.7%).
CHECK. 0.04*25000 + 0.057*50000 + 0.107*70000 = 11340 dollars, total annual interest. ! correct !
Solved, using single equation in single unknown.
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