Question 866246: Please help me solve this word problem:
An investment firm recommends that a client should invest in bonds AAA, A and B. The average yield on AAA bonds is 6%, A bonds is 7% and B bonds is 10%. The client wants to invest twice as much in AAA bonds as B bonds. How much should be invested in each bond when:
a) The total investment is $19,000. The investor wants an annual return of $1,370.
b) The total investment is $39,000. The investor wants an annual return of $2,810.
Answer by richwmiller(17219)   (Show Source):
You can put this solution on YOUR website! An investment firm recommends that a client should invest in bonds AAA, A and B. The average yield on AAA bonds is 6%, A bonds is 7% and B bonds is 10%. The client wants to invest twice as much in AAA bonds as B bonds. How much should be invested in each bond when:
a) The total investment is $19,000. The investor wants an annual return of $1,370.
b) The total investment is $39,000. The investor wants an annual return of $2,810.
c=AAA
c=2b,
a+b+c=19000,
.06c+.07a+.10*b=1370
a=7000., b=4000., c=8000.
c=2b,
a+b+c=39000,
.06c+.07a+.10*b=2810
a=15000., b=8000., c=16000.
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