Problema Solution

The Palomar College Foundation has been given an endowment of $3 million to fund scholarships for outstanding math and science students. The foundation wants the endowment to earn enough interest each year to fund 130 $2000 scholarships. They plan to invest part of the money in a safe investment earning 7% simple interest and the rest in another account earning 11% simple interest. How much should they invest in each account to have enough interest to fund the 130 scholarships?

Answer provided by our tutors

let x=amount for 7% and y= amount for 11%

x+y=3000,000

0.07x+0.11y=130*2000=260000

solving

x=1750,000

and y=1250,000