An inheritance of $40,000 is divided among three investments yielding $3,500 in interest per year. The interest rates for the three investments are 7%, 9%, and 11%. Find the amount of each investment when the second and third are $3,000 and $5,000 less than the first, respectively.

Question

Mathematics

Barbara Clayton

5 December, 13:33

An inheritance of $40,000 is divided among three investments yielding $3,500 in interest per year. The interest rates for the three investments are 7%, 9%, and 11%. Find the amount of each investment when the second and third are $3,000 and $5,000 less than the first, respectively.

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Answers (1)

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Kirsten Armstrong · Answer 1

x = $ 16,000, y = $13,000 z = $11,000

Step-by-step explanation:

given,

Investment amount $40,000

three investments yielding = $3,500

three investments are 7%, 9%, and 11%

second and third are $3,000 and $5,000 less than the first

0.07 x + 0.09 y + 0.11 z = $ 3,500

x + (x - 3000) + (x - 5000) = $ 40,000

3x = $48,000

x = $ 16,000

y = 16000 - 3000 = $ 13,000

z = 16000 - 5000 = $ 11,000

the investment by each

x = $ 16,000, y = $13,000 z = $11,000