Ask Question
28 October, 03:48

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?

+1
Answers (1)
  1. 28 October, 06:32
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Green River Community College's scholarship fund receives a gift of $ 160000. The money is invested in stocks, bonds, and CDs. CDs pay 2 % ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers