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March 28, 2017

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An inheritance of $50,000 is divided into two investments earning 8.5% and 10% simple interest. ( The 10% investment has a greater risk.) Your objective is to obtain a total annual interest income of $4700 form the investments. What is the smallest amount you can invest at 10% in order to meet your objective?

  • math - ,

    A = amt invested at 8.5%
    B = amt invested at 10%
    A + B = 50000 or
    A = 50000 - B
    income = 0.085A + 0.10B = 4700
    substitute A in terms of B and solve

  • math - ,

    a = nothing

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