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Question

An inheritance of $24,000 is to be divided among three trusts with the second trust receiving twice as much as the first trust. The three trusts pay interest at the rates of 9%, 10%, and 6% annually, respectively, and return a total in interest of$2210 at the end of the first year. How much was invested in each trust?

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Let xx dollars be the amount invested in the first trust. Twice as much is invested in the second trust so 2x2x dollars is invested in the second trust. A total of $24,000\$24,000 is invested in the three trusts so 24,000x2x=24,0003x24,000-x-2x=24,000-3x dollars is invested in the third trust. Since the trusts earn 9%, 10%, and 6% annual interest, respectively, then the amount of interest earned on the three trusts is 0.09x+0.1(2x)+0.06(24,0003x)0.09x+0.1(2x)+0.06(24,000-3x). It is given that the amount of interest earned is $2210\$2210 so 0.09x+0.1(2x)+0.06(24,0003x)=22100.09x+0.1(2x)+0.06(24,000-3x)=2210. Solve this equation for xx:

0.09x+0.1(2x)+0.06(24,0003x)=22100.09x+0.2x+14400.18x=2210Simplify and distribute.0.11x+1440=2210Combine like terms.0.11x=770Subtract 1440 on both sides.x=7000\begin{align*} 0.09x+0.1(2x)+0.06(24,000-3x)&=2210\\ 0.09x+0.2x+1440-0.18x&=2210&&\text{Simplify and distribute.}\\ 0.11x+1440&=2210&&\text{Combine like terms.}\\ 0.11x&=770&&\text{Subtract 1440 on both sides.}\\ x&=7000 \end{align*}

Therefore x=$7,000x=\$7,000 is invested in the first trust, 2x=2($7,000)=$14,0002x=2(\$7,000)=\$14,000 is invested in the second trust, and $24,0003($7000)=$24,000$21,000=$3,000\$24,000-3(\$7000)=\$24,000-\$21,000=\$3,000 was invested in the third trust.

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