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Question

An inheritance of $20,000 is divided among three investments yielding a total of$1780 in interest per year. The interest rates for the three investments are 7%, 9%, and 11%. The amounts invested at 9% and 11% are $3000 and$1000 less than the amount invested at 7%, respectively. Find the amount invested at each rate.

Solution

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Let xx be the amount invested at 7%, yy be the amount invested at 9%, and zz be the amount invested at 11%.

Since the total investment is $20,000\$20,000, then x+y+z=20,000x+y+z=20,000.

xx dollars invested at 7% will yield 0.07x0.07x dollars in interest, yy dollars invested at 9% will yield 0.09y0.09y dollars in interest, and zz dollars invested at 11% will yield 0.11z0.11z dollars in interest. The total amount of interest is then 0.07x+0.09y+0.11z0.07x+0.09y+0.11z dollars. Since the investments earn a total of $1780\$1780 in interest, then 0.07x+0.09y+0.11z=17800.07x+0.09y+0.11z=1780.

If the amount invested at 9% is $3000\$3000 less than the amount invested at 7%, then y=x3000y=x-3000.

If the amount invested at 11$is$1000\$1000 less than the amount invested at 7%, then z=x1000z=x-1000.

The system of equations is then

{x+y+z=20,0000.07x+0.09y+0.11z=1780y=x3000z=x1000\left\{\begin{aligned}x+y+z&=20,000\\0.07x+0.09y+0.11z&=1780\\y&=x-3000\\z&=x-1000\end{aligned}\right.

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