To state: The amount that Sophia have in each investment if she receives $10,843 interest the first year.
She has $80,000 and she invests part of it in CDs earning 6.7% APY, part in bonds earning 9.3% APY, and remainder in a growth fund earning 15.6% APY. She invests 3 times as much in the growth funds as in the other two combined.
The amount invested in CDs is $14500, in bonds is $5500, and in growth funds are $60000.
Given information:
Sophia has $80,000 and she invests part of it in CDs earning 6.7% APY, part in bonds earning 9.3% APY, and remainder in a growth fund earning 15.6% APY. She invests 3 times as much in the growth funds as in the other two combined.
Explanation:
Let’s take x as the amount invested in CDs at 6.7%, y as the amount invested in bonds at 9.3%, and z as the amount invested in growth funds at 15.6%.
Now make equations using the given information.
Total amount invested is:
Amount invested in the growth funds is 3 times as much in the other two combined.
The total interest earned is $10,843:
The three equations are:
Let’s take,
The system of equation can be written as:
Then
Solve for X by multiplying both sides by
Use graphing calculator to find the value,
Therefore, the amount that Sophia has invested in CDs is $14500, in bonds is $5500, and in growth funds is $60000.
Chapter 7 Solutions
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