MaggieSmith12345
New member
- Joined
- Oct 16, 2010
- Messages
- 8
you have $500,000 in an IRA at the time you retire. You have the option of investion this money in twofunds: Fund A pays 1.9% annually and Fund B pays 6.9% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $27,000?
Alright this question seemed similar to the last question i posted so i set it up the same with two equations being
.019x + .069y = 500,000
and then x + y = 27,000 going to y = 27,000 - x
plugging that into my first equation
.019 + .069(27,000 - x) = 500,000
however when i calculate through im getting a negative answer for x
-.05x = 498,137 so x = -9,962,740
Which i know isn't right, this makes me question my co efficients for x & y , but i did try them as they were so instead of .019 and .069 i put in 1.9 and 6.9 but it still worked out to be negative..
If someone could lend a hand, it would be greatly appreciated! Thanks so much
Alright this question seemed similar to the last question i posted so i set it up the same with two equations being
.019x + .069y = 500,000
and then x + y = 27,000 going to y = 27,000 - x
plugging that into my first equation
.019 + .069(27,000 - x) = 500,000
however when i calculate through im getting a negative answer for x
-.05x = 498,137 so x = -9,962,740
Which i know isn't right, this makes me question my co efficients for x & y , but i did try them as they were so instead of .019 and .069 i put in 1.9 and 6.9 but it still worked out to be negative..
If someone could lend a hand, it would be greatly appreciated! Thanks so much