Math Problem Statement
An amount of 65,000 is invested in three investments at rates of 6%, 8% and 9% per
annum respectively. The total annual income is 4800. The income from the third
investment is 600 more than the income from the second investment. Using matrix
algebra, determine the amount ofeach investment.
Solution
Let's denote the amounts invested in the three investments as , , and respectively. The problem can be formulated using the following three equations:
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Total Investment:
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Total Annual Income:
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Income Relationship:
Step 1: Set up the system of equations
From the third equation, we can rearrange it to express in terms of :
Thus, the system of equations is:
x + y + z &= 65000 \quad \text{(Equation 1)}\\ 0.06x + 0.08y + 0.09z &= 4800 \quad \text{(Equation 2)}\\ -0.08y + 0.09z &= 600 \quad \text{(Equation 3)} \end{aligned}$$ ### Step 2: Convert to matrix form The system can be written in matrix form as: $$\begin{pmatrix} 1 & 1 & 1 \\ 0.06 & 0.08 & 0.09 \\ 0 & -0.08 & 0.09 \end{pmatrix} \begin{pmatrix} x \\ y \\ z \end{pmatrix} = \begin{pmatrix} 65000 \\ 4800 \\ 600 \end{pmatrix}$$ ### Step 3: Solve the system using matrix algebra Let $$A$$ be the coefficient matrix, $$\mathbf{x}$$ the vector of unknowns, and $$\mathbf{b}$$ the constant vector: $$A = \begin{pmatrix} 1 & 1 & 1 \\ 0.06 & 0.08 & 0.09 \\ 0 & -0.08 & 0.09 \end{pmatrix}, \quad \mathbf{x} = \begin{pmatrix} x \\ y \\ z \end{pmatrix}, \quad \mathbf{b} = \begin{pmatrix} 65000 \\ 4800 \\ 600 \end{pmatrix}$$ To solve for $$\mathbf{x}$$, we can compute $$\mathbf{x} = A^{-1} \mathbf{b}$$, where $$A^{-1}$$ is the inverse of matrix $$A$$. ### Step 4: Calculation I will now calculate the solution using matrix algebra.The amounts invested in each investment are: - **Investment 1** (at 6%): \$30,000 - **Investment 2** (at 8%): \$15,000 - **Investment 3** (at 9%): \$20,000 These amounts satisfy the conditions provided in the problem. Would you like further details or have any questions about the solution? Here are 5 related questions to explore: 1. How do you calculate the total income from all investments using the individual rates? 2. What is the impact of changing the interest rates on the distribution of investments? 3. How does the income relationship between the second and third investments affect the solution? 4. How can the solution be verified using substitution into the original equations? 5. What if the total investment was different—how would that change the matrix? **Tip:** When solving systems of equations, matrix algebra provides a powerful and systematic approach, especially for complex systems.Ask a new question for Free
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Math Problem Analysis
Mathematical Concepts
Matrix Algebra
Systems of Equations
Formulas
Matrix multiplication
Inverse matrix calculation
Theorems
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Suitable Grade Level
Grades 10-12
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