Posted by gaurav on Saturday, October 29, 2011 at 2:10am.
4. You have $55000 to invest, and two funds you would like to invest in. The YouRiskIt Fund yields 13% interest. The ExtraDull Fund yields 7% interest. Because of the college financial aid implications, you donâ€™t think you can afford to earn more than $6500 in interest income this year. How should you put in each fund?

math  drwls, Saturday, October 29, 2011 at 2:29am
Let X be the amount invested at 13% interest
Let Y be the amount invested at 7% interest
0.13X + 0.07 Y = 6500 (maximum without financial aid penalty)
X + Y = 55,000
0.13X + 0.13Y = 7150
0.06Y = 650
Y = 10,833.33 at 7%
X = 44,166.67 at 13%
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