Algebra word problem with many parts

User Generated

yvyonpu3

Mathematics

Description

The controller (money manager) for a small company puts some money in the bank account paying 4% per year. He uses some additional money. amounting to 1/3 the amount in the bank, to buy bonds paying 5% per year. With the balance of the funds, he buys a 9% certificate of deposit. The first year the investments bring a return of $672. If the total of the investment is $10,000 how much is invested at each rate?

The amount in the bank account is $???, amount in bonds $???, certificate deposit $???

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

$x @ 4%, $x/3 @ 5% , $(10,000- 4x/3) @ 9% 

.04x +.05x/3 + .09(10000 - 4x/3) = 729 

4x + 5x/3 + 9(10000 - 4x/3) = 72900 

19x/3 = 17100, x = 2700 
------------------ 
$2700 @ 4% 
$900 @ 5% 
$6400 @9% ..............................................................................................................................


Anonymous
Really useful study material!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags