Problema Solution
You plan to invest $12,000 in to two funds paying 5% and 4.5% simple interest. Your goal is to obtain a total annual interest income of $580 from the investments. How much should you invest in each account?
Answer provided by our tutors
let
x = investment with 5% simple interest
y = investment with 4.5% simple interest
x + y =12000
5% of x + 4.5% of y = $580
0.05*x + 0045*y = 580
by solving the system of equations
x + y =12000
0.05*x + 0045*y = 580
we find
x = $8000
y = $4000
I should invest $8000 and $4000 with 5% and 4.5% simple interest.