Problema Solution
One safe investment pays 8% per year, and a more risky investment pays 14% per year. How much must be invested in each account if an investor of $99,000 would like to return of $9,540 per year?
Answer provided by our tutors
let
x = the money invested at 8% per year
y = the money invested at 14% per year
x + y = 99000
0.08x + 0.14y = 9540
by solving the above system of equations we find
x = $72,000
y = $27,000
click here to see the step by step solution of the system of equations
$72,000 should be invested at 8% per year.
$27,000 should be invested at 14% per year.