Problema Solution
You plan to invest $23,000 in two funds paying 3% and
4 ad 1/2% simple interest. (There is more risk in the
4 and 1/2%fund.) Your goal is to obtain a total annual interest income of $700 from the investments. What is the smallest amount you can invest in the
4and1/2%fund and still meet your objective?
Answer provided by our tutors
Let amount invest in 4 and 1/2% fund=x.
So, amount invested in 3% fund=23,000-x.
Therefore,
x*0.045+(23,000-x)0.03=700
0.045x+690-0.03x=700
0.015x=700-690
0.015x=10
x=666.67
Amount invest in 4 and 1/2% fund=$666.67