Question

Country Day's scholarship fund receives a gift of $ 130000. The money is invested in stocks, bonds, and CDs. CDs pay 4.5 % interest, bonds pay 2.2 % interest, and stocks pay 10.4 % interest. Country day invests $ 25000 more in bonds than in CDs. If the annual income from the investments is $9355. How much was invested in each vehicle?

Answer 1

The student's question pertains to determining the amount invested in CDs, bonds, and stocks using given interest rates and annual income. By forming a system of equations with the given information and solving it, we can find the allocations for each investment type.

Step-by-step explanation:

The student has asked how much was invested in stocks, bonds, and CDs for Country Day's scholarship fund, given certain interest rates and an annual income from these investments. To solve this problem, we can use a system of equations based on the given interest rates and the fact that the total investment equals $130,000.

Let's denote the amount invested in CDs as x, in bonds as y, and in stocks as z. According to the problem, the amount invested in bonds is $25,000 more than that in CDs, which gives us:

• y = x + $25,000

The total amount invested is $130,000, so:

• x + y + z = $130,000

The total annual income from these investments is $9,355, which results from the sum of the individual incomes from CDs, bonds, and stocks. Thus:

• 0.045x + 0.022y + 0.104z = $9,355

With these equations, we can solve for the amounts x, y, and z representing the investments in CDs, bonds, and stocks respectively.