SOLUTION: A $108,000 trust is to be invested in bonds paying 7%, CDs paying 5%, and mortgages paying 10%. The sum of the bond and CD investment must equal the mortgage investment. To earn $8

Algebra ->  Matrices-and-determiminant -> SOLUTION: A $108,000 trust is to be invested in bonds paying 7%, CDs paying 5%, and mortgages paying 10%. The sum of the bond and CD investment must equal the mortgage investment. To earn $8      Log On


   

Question 876580: A $108,000 trust is to be invested in bonds paying 7%, CDs paying 5%, and mortgages paying 10%. The sum of the bond and CD investment must equal the mortgage investment. To earn $8600 annual income from the investments, how much should the bank invest in bonds?
Answer by richwmiller(17219) About Me  (Show Source):
You can put this solution on YOUR website!
b+c+m=108,000
.07*b+.05*c+.1m=8600
b+c-m=0
1,1,1,108000
.07,.05,.10,8600
1,1,-1,0

1,0,0,25,000
0,1,0,29,000
0,0,1,54000
b=25,000
c=29,000
m=54000