Homework Help: math

Posted by gaurav on Friday, October 28, 2011 at 3:11pm.

1. You have $55000 to invest, and two funds you would like to invest in. The You-Risk-It Fund yields 13% interest. The Extra-Dull Fund yields 7% interest. Because of the college financial aid implications, you don’t think you can afford to earn more than $6500 in interest income this year. How should you put in each fund?

math - Henry, Saturday, October 29, 2011 at 10:11pm
Invest $X @ 13% in You-Risk-it fund.
Invest$(55,000-X) @ 7% in Extra-Dull Fund.

0.13x + 0.07(55,000-x) = $6500,
0.13x + 3850 - 0.07x = 6500,
0.06x = 2650,

X = $44,166.67. Invested @ 13%.
(55,000 - 44,166.67) = $10,833.33 Invested @ 7%.

Answer this Question

Related Questions

math - 4. You have $55000 to invest, and two funds you would like to invest in. ...
math - 1. You have $55000 to invest, and two funds you would like to invest in. ...
College Algebra - You plan to invest $12,000 in two funds paying 41/2% and 5% ...
Statistics - Probability - A mutual fund company has six funds that invest in ...
Algebra - Michael invested his savings in two investment funds. The amount he ...
math - Aldo invested his savings in two investment funds. The $24, 000that he ...
MSIS Management Science Methods - How can I set this question up in Lindo? ...
Math - Salma invested her savings in two investment funds. The that she ...
Math - Laura invested her savings in two investment funds. The that she invested...
math - A winner of the Florida Lotto has decided to invest $500,000 per year. ...

For Further Reading

First Name:
School Subject:
Answer: