A company receives a gift of $ 155,000.   The money is invested in stocks, bonds, and CDs.
CDs pay 4.5 % interest, bonds pay 2.8 % interest, and stocks pay 8.4 % interest.
The company invests $ 40,000 more in bonds than in CDs.

If the annual income from the investments is $ 7,930, how much was invested in each account?

Solution to the Problem:


The company had $30,000 invested in CDs, $70,000 invested in bonds, and $55,000 invested in Stocks.

Let s = amount invested in stocks
Let b = amount invested in bonds
Let c = amount invested in CDs

Then you can write three equations:
(1)     c + b + s = 155,000
(2)     .045c + .028b + .084s = 7930
(3)     b = c + 40,000

Substituting (3) in (1), we obtain:
(4)     s = 115,000 - 2c

Now multiply both sides of equation (2) by 1,000:
(5)     45c + 28b + 84s = 7,930,000

Now substitute (4) and (3) in equation (5) to get:
45c + 28(c + 40,000) + 84(115,000 - 2c) = 7,930,000
45c + 28c + 1,120,000 +9,660,000 - 168c = 7,930,000
2,850,000 = 95c

Therefore, c = $30,000
b = $70,000
s = $55,000


Correctly solved by:

1. Ivy Joseph Pune, Maharashtra, India
2. Dr. Hari Kishan D.N. College,
Meerut, Uttar Pradesh, India
3. Davit Banana Istanbul, Turkey
4. Sudhir Bavdekar Mumbai, India
5. Carlos de Armas Barcelona City, Spain
6. Colin (Yowie) Bowey Beechworth, Victoria, Australia
7. Kelly Stubblefield Mobile, Alabama, USA
8. Seth Cohen Concord, New Hampshire, USA