SOLUTION: A retired couple has $380,000 to invest. They chose one relatively safe investment fund that has an annual yield of 5% and a riskier investment with an annual yield of 10%. How m

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Question 1185194: A retired couple has $380,000 to invest. They chose one relatively safe investment
fund that has an annual yield of 5% and a riskier investment with an annual yield of 10%. How much should they investment in each fund to earn $20,000 per year?
Answer by ikleyn(52794)   (Show Source): You can put this solution on YOUR website!
.

Let  x  be the amount invested at  10%;

then the amount invested at  5%  is  (380000-x)  dollars.


Then the total interest equation to find x is


    0.1x + 0.05(380000-x) = 20000.


From the equation


    x =  = 20000.


ANSWER.  $20000 should be invested at 10%  and the rest amount,  (380000-20000) = 360000 should be invested at 5%.


CHECK.  0.1*20000 + 0.05*360000 = 20000  dollars, total annual interest.   ! Correct !

Solved.

-----------------

It is a standard and typical problem on investments.

If you need more details,  or if you want to see other similar problems solved by different methods,  look into the lesson
    - Using systems of equations to solve problems on investment
in this site.

You will find there different approaches  (using one equation or a system of two equations in two unknowns),  as well as
different methods of solution to the equations  (Substitution,  Elimination).

Also,  you have this free of charge online textbook in ALGEBRA-I in this site
    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lesson is the part of this online textbook under the topic  "Systems of two linear equations in two unknowns".


Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.



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