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10 January, 20:11

Green River Community College's scholarship fund receives a gift of $ 160000. The money is invested in stocks, bonds, and CDs. CDs pay 2 % interest, bonds pay 2.8 % interest, and stocks pay 9.8 % interest. GRCC invests $ 10000 more in bonds than in CDs. If the annual income from the investments is $ 7580, how much was invested in each vehicle?

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  1. 10 January, 20:21
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    amount invested in Stocks = $50,000

    amount invested in bonds = $60,000

    amount invested in CDs = $50,000

    Explanation:

    Let amount invested in Stocks be 's'

    amount invested in bonds be 'b'

    amount invested in CDs be 'c'

    Now,

    According to the question

    s + b + c = $160,000 ... (1)

    b = c + 10,000 ... (2)

    and,

    0.098s + 0.028b + 0.02c = $7580 ... (3)

    substituting b from 2 in equation 1

    we get

    s + c + 10,000 + c = $160,000

    or

    s + 2c = 150,000

    or

    s = 150,000 - 2c ... (4)

    substituting s from 4 and b from 2 in 3, we get

    0.098 (150,000 - 2c) + 0.028 (c + 10,000) + 0.02c = $7580

    or

    14700 - 0.196c + 0.028c + 280 + 0.02c = 7580

    or

    -0.148c = - 7400

    or

    c = $50,000

    Therefore,

    s = 150,000 - 2 (50,000)

    or

    s = 50,000

    and,

    b = (50,000) + 10,000

    = 60,000

    Hence,

    amount invested in Stocks = $50,000

    amount invested in bonds = $60,000

    amount invested in CDs = $50,000
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