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 3% per year. He uses some additional money, amounting to 1/3 the amount placed in the bank, to buy bonds paying 4% per year. With the balance of the funds, he buys a 9% certificate of deposit. The first year the investments bring a return of $785. 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

let he invested $ x in bank account

amount invested in bonds = x/3

amount invested in certificate of deposit is 10000 - ( x+x/3)

setting up the equation

.03x + .04 (x/3) + .09 ( 10000 - 4x/3 ) = 785

x = 1500

amount invetsed in bank account = $ 1500

amount invetsed in bonds = $ 500

amount invested in certificate of deposit = $ 8000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.