Question

Melissa decided to divide her $42,000 of savings into three investments: a savings account paying 5% simple interest, a time deposit account paying 7% simple interest, and a bond paying 9% simple interest. At the end of the year, she had earned $2600 from interest from all three investments. She also noted that she invested $6000 more in the savings account than the other two accounts combined.

Answer 1

Amount in savings account = $24,000

amount put into time deposit account = $11,000

amount put into bond account = $7,000

Explanation:

Let x be amount put into savings account, y be amount put into time deposit account and z be amount put into bond account.

Thus;

0.05x + 0.07y + 0.09z = 2600 - - (eq1)

Also,

x + y + z = 42,000 - - - (eq2)

Now,we are told she invested 6000 more in the savings account than the other 2 combined. Thus;

x = 6000 + y + z

So,

x - y - z = 6000 - - - (eq3)

Solving the 3 equations simultaneously gives;

x = $24,000 ; y = $11,000 ; z = $7,000