SOLUTION: Paul has $40,000 to invest. his intent is to earn 6% interest on his investment. He can invest part of his money at 5% and part at 9% interest. How much does Paul need to invest

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Question 1122414: Paul has $40,000 to invest. his intent is to earn 6% interest on his investment. He can invest part of his money at 5% and part at 9% interest. How much does Paul need to invest in each option to make a total of 6% return on his $40,000? I don't even know where to start with this. I have no clue how to put this into equation form. I would appreciate a little help. THANK YOU!!!
Found 2 solutions by josmiceli, MathTherapy:
Answer by josmiceli(19441)   (Show Source): You can put this solution on YOUR website!
Let = amount invested @ 5%
Let = amount invested @ 9%
———————
(1)
(2)
—————————————————
Solve for a and b. I’d do it, but it’s bedtime
Cheers
Answer by MathTherapy(10552)   (Show Source): You can put this solution on YOUR website!

Paul has $40,000 to invest. his intent is to earn 6% interest on his investment. He can invest part of his money at 5% and part at 9% interest. How much does Paul need to invest in each option to make a total of 6% return on his $40,000? I don't even know where to start with this. I have no clue how to put this into equation form. I would appreciate a little help. THANK YOU!!!
Let amount that he needs to invest at 5% be F

Then amount he needs to invest at 9% is: 40,000 - F

We then get the following EARNINGS equation: .05F + .09(40,000 - F) = .06(40,000)

.05F + 3,600 - .09F = 2,400

.05F - .09F = 2,400 - 3,600

- .04F = - 1,200

F, or amount he needs to invest at 5% = 

Amount he needs to invest at 9% = 

You need to do your own check! 

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