Problema Solution

A renowned mathematician was awarded a bonus of $70,000 to accept a tenured professorship at a university. She invested part of her bonus in fixed income securities yielding 10% annually. The rest of the money was invested in a high tech startup expecting to yield 33% to it's investors annually. How much was invested in the tech business if she was expecting to earn $13440 annually from her investments?

Answer provided by our tutors

x(0.10)(1) + (70000-x)(0.33)(1) = 13440 ; 0.1x - 0.33x = 13440 - 23100 ;

0.23x = 9660  ;  x = 9660/0.23 = 42000 ; 70000- 42000 = 28000