Question

Maricopa's Success scholarship fund receives a gift of $ 75000. The money is invested in stocks, bonds, and CDs. CDs pay 3.75 % interest, bonds pay 3.8 % interest, and stocks pay 10.3 % interest. Maricopa Success invests $ 25000 more in bonds than in CDs. If the annual income from the investments is $ 4142.5 , how much was invested in each account?

$____ in stocks, $____ in bonds, and $____ in CDs.

Answer 1

Answer: Maricopa Success invested $13,350 in CDs, $38,350 in bonds, and $23,300 in stocks.

Explanation:

Let x be the amount invested in CDs.

Then, the amount invested in bonds would be (x + $25,000) and the amount invested in stocks would be ($75,000 - x - (x + $25,000)) = ($50,000 - 2x).

The annual income from the investments is $4,142.5, so we can set up the following equation:

0.0375x + 0.038(x + $25,000) + 0.103($50,000 - 2x) = $4,142.5

Simplifying the equation, we get:

0.0755x + $5,150 = $4,142.5

0.0755x = -$1,007.5

x = -$1,007.5 / 0.0755

x = $13,350

Therefore, the amount invested in CDs is $13,350.

The amount invested in bonds is $13,350 + $25,000 = $38,350.

The amount invested in stocks is $75,000 - $13,350 - $38,350 = $23,300.

So, Maricopa Success invested $13,350 in CDs, $38,350 in bonds, and $23,300 in stocks.