Question

An inheritance of $19,000 was divided among three investments yielding a total of $1490 in simple interest per year. The interest rates for the three investments were 5%, 7%, and 10%. The 5% and 7% investments were $4000 and $1000 less than the 10% investment, respectively. Find the amount placed in each investment.

Answer 1

let the 10% investment be x
then the 5% investment was x - 4000
and the 7% investment was x - 1000

.1x + .05(x-4000) + .07(x - 1000) = 1490
.1x + .05x - 200 + .07x - 70 = 1490
.22x = 1760
x = 8000

The investments were $8000, $4000, and $7000 for the 10%, 5%, and 7% respectively.