Problema Solution
after winning the state lottery, theo has $40,000 to invest. he will put part of the money in an account paying 4% interest and the remaining into stocks paying 6% interest. his account tells him that the total annual income from these investments shoulb be $2040. how much should he invest at each rate?
Answer provided by our tutors
let the amount in account be x
so amount in stocks is 40000-x
so
0.04*x + 0.06(40000-x)=2040
=>0.02x=360
=>x = 18000
and 40000-18000 is 32000