SOLUTION: Aplication Problem:
If I have $70,000 to invest. I want to receive an income of $5,000 per year. I have to invest in two accounts:
The first account have a 6% rate and the othe
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Question 237841: Aplication Problem:
If I have $70,000 to invest. I want to receive an income of $5,000 per year. I have to invest in two accounts:
The first account have a 6% rate and the other at 8.5%. How much I have to invest in each account to earn $5,000 per year?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
Let 
represent the amount invested at 8.5%. Then the amount invested at 6% would be 
.
The amount of interest earned on the 8.5% money is then 
and the amount of interest earned on the 6% money is )
and these two amounts must add up to $5000.
\ =\ 5000)
Solve for to get the 8.5% amount. Subtract that from 70000 to get the 6% amount.
John
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