Question

Maricopa's Success scholarship fund receives a gift of $ 115000. The money is invested in stocks,

bonds, and CDs. CDs pay 4 % Interest, bonds pay 5.3 % interest, and stocks pay 6.2 % interest.

Maricopa Success Invests $ 15000 more in bonds than in CDs. If the annual income from the

Investments is $ 6220, how much was invested in each account?

Maricopa Success invested $

in stocks.

Maricopa Success invested $

in bonds.

Maricopa Success invested $

in CDs.

Answer 1

$50,000 in stocks

$40,000 in bonds

$25,000 in CDs

Explanation:

Let c represent the amount invested in CDs. Then the amount invested in bonds is (c+15000) and the amount invested in stocks is (115000 -c -(c+15000)) = (100000 -2c). The total interest earned is ...

0.04c +0.053(c +15000) +0.062(100,000 -2c) = 6220

-0.031c +795 +6200 = 6220

-0.031c = -775 . . . . . . . . . . . . . . . subtract the left-side constants

c = 25000 . . . . . . . . . . divide by the coefficient of c

c+15000 = 40000 . . . . bonds

100000 -2c = 50000 . . . . . stocks

Maricopa Success invested ...

$50,000 in stocks

$40,000 in bonds

$25,000 in CDs