Bob has $50,000 to invest and two funds that he'd like to invest in. One is a high risk fund with a yield of 14%. The second is more conservative with a yield of 6%. Because of college financial-aid implications, He does not think he can afford to earn more than $4,500 in interest income this year. How much should he put in each fund in order to earn $4,500?
help with word problem please
- Thread starter mathox
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mmm4444bot
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You did not show any work, so I'm not sure where you're stuck.
Here's an example.
$30,000 is split between two investments. One investment earns 16% simple interest; the other earns 25% simple interest. After one year, the interest earned on both investments totals $6,060. How much of the $30,000 was invested at each rate?
Let x = amount invested at 16%
Then the expression (30000 - x) represents the amount invested at 25%
Simple interest for one year is: the amount invested times the decimal form of interest rate.
0.16x is the interest from the 16% investment.
0.25(30000 - x) is the interest from the 25% investment.
Together, these amounts total $6,060.
0.16x + 0.25(30000 - x) = 6060
Solve this equation for x.
Subtract this value of x from 30000.
x = 16000
30000 - 16000 = 14000
$16,000 was invested at 16%, and $14,000 was invested at 25%.
Now, you set up your exercise and finish it the same way. And if you would like more help with this exercise, then please show whatever work you're able to accomplish, and try to say something about why you're stuck, so that I might determine where to continue helping you.
Here's an example.
$30,000 is split between two investments. One investment earns 16% simple interest; the other earns 25% simple interest. After one year, the interest earned on both investments totals $6,060. How much of the $30,000 was invested at each rate?
Let x = amount invested at 16%
Then the expression (30000 - x) represents the amount invested at 25%
Simple interest for one year is: the amount invested times the decimal form of interest rate.
0.16x is the interest from the 16% investment.
0.25(30000 - x) is the interest from the 25% investment.
Together, these amounts total $6,060.
0.16x + 0.25(30000 - x) = 6060
Solve this equation for x.
Subtract this value of x from 30000.
x = 16000
30000 - 16000 = 14000
$16,000 was invested at 16%, and $14,000 was invested at 25%.
Now, you set up your exercise and finish it the same way. And if you would like more help with this exercise, then please show whatever work you're able to accomplish, and try to say something about why you're stuck, so that I might determine where to continue helping you.