SOLUTION: I NEED HELP SETTING UP THIS WORD PROBLEM: Tracy has $20,000 to invest. As her financial planner, you recommend that she diversify into three investments: Treasury bill that yie

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Question 806673: I NEED HELP SETTING UP THIS WORD PROBLEM: Tracy has $20,000 to invest. As her financial planner, you recommend that she diversify into three investments: Treasury bill that yield 5% simple interest, treasury bonds that yield 7% simple interest, and corporate bonds that yield 10% simple interest. Tracy wishes to earn $1390 per year in income. She also wants her investment in Treasury bills to be $3000 more than her investment in corporate bonds. How much money should she place in each investment?

Found 2 solutions by solver91311, josmiceli:
Answer by solver91311(24713) (Show Source):
You can put this solution on YOUR website!

Solve the 2X2 system. is the amount in Corporate Bonds, is the amount in the T-bill, and is the amount in T-bonds.

John

Egw to Beta kai to Sigma
My calculator said it, I believe it, that settles it

Answer by josmiceli(19441) (Show Source):
You can put this solution on YOUR website!
Let = amount invested @ 5%
Let = amount invested @ 7%
Let = amount invested @ 10%
-------------------------------
(1)
(2)
(3)
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You have 3 equations and 3 unknowns,
so it is solvable