Problem

Maricopa's Success scholarship fund receives a gift of $ 95000. The money is invested in stocks, bonds, and CDs. CDs pay 3% interest, bonds pay 4% interest, and stocks pay 9.6% interest. Maricopa Success invests $15000 more in bonds than in CDs. If the annual income from the investments is $4620, how much was invested in each account?

Answer

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Answer

Final Answer: The amount invested in CDs is $30000, in bonds is $45000, and in stocks is $20000.

Steps

Step 1 :Let's denote the amount invested in CDs as x, the amount invested in bonds as x + 15000, and the amount invested in stocks as 95000 - x - (x + 15000).

Step 2 :We know that the total interest earned is $4620. We can set up an equation to represent this: 0.03x (interest from CDs) + 0.04(x+15000) (interest from bonds) + 0.096(95000x(x+15000)) (interest from stocks) = 4620.

Step 3 :Solving this equation gives us the value of x, which represents the amount invested in CDs.

Step 4 :Substituting x into the expressions for the amounts invested in bonds and stocks gives us the respective amounts.

Step 5 :Final Answer: The amount invested in CDs is $30000, in bonds is $45000, and in stocks is $20000.

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