The controller (money manager) for a small company puts some money in a bank acc

Question

The controller (money manager) for a small company puts some money in a bank account paying 5% per year. He uses some additional money, amounting to 1/3 the amount placed in the bank, to buy bonds paying 6% per year. With the balance of the funds, he buys a 10% certificate of deposit. The first year the investments bring a return of $734. If the total of the investments is $10,000 how much is invested at each rate?

The amount in the bank account is $........., the amount in the bonds is $......, and the amount in the certificate of deposit is $ ............

Explanation / Answer

given total of the investments is $10,000

let amount put is  bank account =x

he uses some additional money, amounting to 1/3 the amount placed in the bank, to buy bonds paying 6% per year

=>amount used to buy bond = (x/3)

balance of the funds=10000-x-(x/3)

The first year the investments bring a return of $734

=>(5/100)x+ (6/100)(x/3) +(10/100)(10000-x-(x/3)) =734

=>5x+ 6(x/3) +10(10000-x-(x/3)) =73400

=>5x+ (6x/3) +100000-10x-(10x/3) =73400

=> 100000-5x-(4x/3) =73400

=> (19x/3) =26600

=>x=4200

amount put is  bank account =4200 $

amount in the bonds =(1/3)*4200= 1400$

amount in the certificate of deposit=10000-4200-1400 =4400 $

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