A $100,000 trust is to be invested in bonds paying 9%, CDs paying 7%, and mortgages paying 10%. The sum of the bond and CD investment must equal the mortgage investment. To earn an $9100 annual income from the
Investments, how much should the bank invest in bonds?
A) $20,000
B) $30,000
C) $28,000
D) $50,000

Question

Quizplus · Accepted Answer

To solve, let x be the amount invested in bonds, y in CDs, and z in mortgages. We have x + y + z = 100,000, x + y = z, and 0.09x + 0.07y + 0.10z = 9,100. Solving these equations gives x = $30,000.

A $100,000 Trust Is to Be Invested in Bonds Paying