# SOLUTION: you plan to invest \$12000 in two funds paying 4.25% and 5.5% simple interest. Yor goal is to obtain a total anual interest income of \$1000 from the investments. what is the smalles

Algebra ->  Algebra  -> Customizable Word Problem Solvers  -> Finance -> SOLUTION: you plan to invest \$12000 in two funds paying 4.25% and 5.5% simple interest. Yor goal is to obtain a total anual interest income of \$1000 from the investments. what is the smalles      Log On

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 Word Problems: Money, Business and Interest Solvers Lessons Answers archive Quiz In Depth

 Click here to see ALL problems on Money Word Problems Question 100133: you plan to invest \$12000 in two funds paying 4.25% and 5.5% simple interest. Yor goal is to obtain a total anual interest income of \$1000 from the investments. what is the smallest amount you can invest in the 4.25% fund and still meet your objective?? I tried doing 0.0425x+(12000-x)0.055=1000 but i get a negative value for x, which means I can't invest any money?? and even if i spent the whole 12000 on the 4.5 interest, i wills till get less than \$1000. Is this a wrong way of solving the problem?? any help would be appreciated. thank you!!!Answer by checkley71(8403)   (Show Source): You can put this solution on YOUR website!IN ORDER TO GET \$1,000 FROM AN INVESTMENT OF \$12,000 IN ONE YEAR YOU NEED TO GET THE FOLLOWING INTEREST RATE: 1000/12000=.0833333 OR 8.333%. -------------------------------------------- THIS IS A BAD/INCORRECT PROBLEM!!!