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 xx, yy, and zz respectively. The problem can be formulated using the following three equations:

  1. Total Investment: x+y+z=65000x + y + z = 65000

  2. Total Annual Income: 0.06x+0.08y+0.09z=48000.06x + 0.08y + 0.09z = 4800

  3. Income Relationship: 0.09z=0.08y+6000.09z = 0.08y + 600

Step 1: Set up the system of equations

From the third equation, we can rearrange it to express zz in terms of yy: 0.09z0.08y=6000.09z - 0.08y = 600

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.

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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