Question

Maricopa's Success scholarship fund receives a gift of $ 115000. The money is invested in stocks, bonds, and CDs. CDs pay 3.75 % interest, bonds pay 3 % interest, and stocks pay 12 % interest. Maricopa Success invests $ 25000 more in bonds than in CDs. If the annual income from the investments is $ 8100 , how much was invested in each account?

Answer 1

To find the amount invested in each account, we can set up equations using the given information. By solving the equations, we find that $40,000 was invested in CDs, $65,000 was invested in bonds, and $50,000 was invested in stocks.

Step-by-step explanation:

Let's assume the amount invested in CDs is x dollars. Since the amount invested in bonds is $25,000 more than in CDs, the amount invested in bonds is (x + $25,000) dollars.

The amount invested in stocks, therefore, is the remaining amount: $115,000 - (x + $25,000) = $90,000 - x dollars.

To find the annual income from the investments, we need to calculate the interest earned from each account and add them up.

The interest earned from CDs is x * 0.0375, the interest earned from bonds is (x + $25,000) * 0.03, and the interest earned from stocks is ($90,000 - x) * 0.12.

The total income is x * 0.0375 + (x + $25,000) * 0.03 + ($90,000 - x) * 0.12.

Simplifying the equation gives $8100 = 0.0375x + 0.03x + $750 - 0.12x.

Combining like terms and solving for x gives x = $40,000.

Therefore, $40,000 was invested in CDs, $65,000 was invested in bonds, and $50,000 was invested in stocks.