Chapter 7 Extra Credit Project
You will solve the problem below using each of the methods we learned in this class. Once you have written the problem as a system of three linear equations in three variables, solve it using the methods we have learned (A-D). You may use your calculator, but you must document all your intermediate steps (e.g., determinants, matrices).
A. Solve the system using classical methods (substitution, elimination)
B. Solve the system by performing row operations on an augmented matrix
C. Solve the system using Cramer's Rule
D. Solve the system using an inverse matrix - be sure to show your matrix algebra
Jennifer has $10,000 to invest. She has narrowed her options down to the following 3 - each based on effective interest rates she derived (i.e., use the simple interest equation). She can invest in a certificate of deposit at 4%. She can invest in bonds paying 5% interest. And she can invest in stocks with a projected interest rate of 13.5%. Due to her understanding of the risks in the various investments, she has decided that she should invest twice as much in stocks as in certificates of deposit. Her goal is to earn $1,000 after one year. How much should she invest in each investment option?
