document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1197167>Question 1197167</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A pension fund manager has been given a total of $900,000 by a corporate client to invest in<BR>\n" );
document.write( "certain types of stocks over the next year. Stuck must be restricted to a certain class of low  -  risk<BR>\n" );
document.write( "stocks and another class of medium risk stocks. The pension fund manager assumes from<BR>\n" );
document.write( "historical data that the low-risk stocks should return 6 % annually and the medium risk stocks<BR>\n" );
document.write( "12% annually. If the client demands an annual return of 8%, what should the pension fund<BR>\n" );
document.write( "manager do?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #830304 by </B><A HREF=/tutors/aboutme.mpl?userid=greenestamps><B>greenestamps(13216)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=greenestamps><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=greenestamps><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=830304\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <br><BR>\n" );
document.write( "Here is a quick and easy non-algebraic approach to solving any 2-part \"mixture\" problem like this.<br><BR>\n" );
document.write( "(1) The desired percent return, 8%, is 1/3 of the way from 6% to 12%.  (Picture the three percentages on a number line, if it helps.)<br><BR>\n" );
document.write( "(2) That means 1/3 of the total should be invested at the higher rate.<br><BR>\n" );
document.write( "ANSWER: 1/3 of $900,000, or $300,000 at 12%; the other $600,000 at 6%.<br><BR>\n" );
document.write( "CHECK:<BR>\n" );
document.write( ".12(300,000)+.06(600,000) = 36000+36000 = 72000<BR>\n" );
document.write( ".08(900000) = 72000<br><BR>\n" );
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