## What youâ€™ll learn to do: Solve equations involving three variables

John received an inheritance of $12,000 that he divided into three parts and invested in three ways: in a money-market fund paying 3% annual interest; in municipal bonds paying 4% annual interest; and in mutual funds paying 7% annual interest. John invested $4,000 more in municipal funds than in municipal bonds. He earned $670 in interest the first year. How much did John invest in each type of fund?

Understanding the correct approach to setting up problems such as this one makes finding a solution a matter of following a pattern. We will solve this and similar problems involving three equations and three variables in this section. Doing so uses similar techniques as those used to solve systems of two equations in two variables. However, finding solutions to systems of three equations requires a bit more organization and a touch of visual gymnastics.