Question

Maricopa's Success scholarship fund receives a gift of $ 130000. The money is invested in stocks, bonds, and CDs. CDs pay 3 % interest, bonds pay 2.4 % interest, and stocks pay 7.2 % interest. Maricopa Success invests $ 25000 more in bonds than in CDs. If the annual income from the investments is $ 5910, how much was invested in each account?

Answer 1

The amount invested in CDs, bonds, and stocks given the annual income from the investments.

Step-by-step explanation:

Let's assume the amount invested in CDs is x.

The amount invested in stocks is 25000 more than the amount invested in CDs, so the amount invested in stocks is (x + 25000).

The amount invested in bonds is 25000 less than the amount invested in stocks, so the amount invested in bonds is ((x + 25000) - 25000) = x.

Now we can calculate the annual income from the investments:

1. The interest from CDs is 3% of x, which is 0.03x.
2. The interest from bonds is 2.4% of x, which is 0.024x.
3. The interest from stocks is 7.2% of (x + 25000), which is 0.072(x + 25000).

The total annual income is 5910, so we can set up the equation:

0.03x + 0.024x + 0.072(x + 25000) = 5910

Simplifying the equation:

0.03x + 0.024x + 0.072x + 1800 = 5910

Combining like terms:

0.126x + 1800 = 5910

Subtracting 1800 from both sides:

0.126x = 4110

Dividing both sides by 0.126:

x = 32571.43

Therefore, $32571.43 was invested in CDs, $32571.43 was invested in bonds, and $57571.43 was invested in stocks.