Question

Edmonds Community College's (EDCC) scholarship fund received a gift of $ 125,000.

The money is invested in stocks, bonds, and CDs.
CDs pay 4.25% interest, bonds pay 4.6% interest, and stocks pay 7.1% simple interest.
EDCC invests $ 50,000 more in bonds than in CDs.

If the annual income from the investments is $7,090 , how much was invested in each vehicle?

Answer 1

CDs = 10,000

Bonds = 60,000

Stocks = 55000

Explanation:

Total investment = $125,000

Amount invested :

CDs = a

Bonds = a + 50000

Stocks =125000 - [a + (a + 50,000)]

Therefore :

Stocks = 125000 - 2a - 50000

Stocks = 75000 - 2a

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