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 $???
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
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$2700 @ 4%
$900 @ 5%
$6400 @9% ..............................................................................................................................