SOLUTION: You have ​$500,000 in an IRA​ (Individual Retirement​ Account) at the time you retire. You have the option of investing this money in two​ funds: Fund A pay
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Question 1067658: You have $500,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing this money in two funds: Fund A pays 2.7% annually and Fund B pays 7.7% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $30,000?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
A person has 
currency units invested in 2 accounts.
One account earns 
percent interest, and the other account earns 
percent interest.
The two accounts earn a total of 
interest in one year.
How much is invested in each account?
Let 
be the amount invested at percent. Then the amount invested at percent is 
, and:
\ =\ I)
Solve for , then calculate
John
My calculator said it, I believe it, that settles it
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