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