SOLUTION: Wendy has $10,000 in her savings. She is going to invest part of the money in a stock which yields 6% per year. She will invest the rest of the money in a money market fund which e
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Question 1098167: Wendy has $10,000 in her savings. She is going to invest part of the money in a stock which yields 6% per year. She will invest the rest of the money in a money market fund which earns 8% per year. She want to have $727 in earned interest at the end of the year. How much money does she invest in the stock and money market fund?
She invests $_______ in the stock.
You can put this solution on YOUR website! I will hope that another tutor will see this problem and show you the traditional algebraic method for solving it. Let me show you instead an alternative method that will always get you to the answer to a "mixture" problem like this faster than the traditional algebraic approach.
(If you don't get another response, and you want to see the algebraic method of solution, re-post the question and specifically ask for it, and if I see the post I will let others respond.)
(1) If all $10,000 were invested at 6%, the interest would be $600.
(2) If all $10,000 were invested at 8%, the interest would be $800.
Where the actual amount of interest lies between those two limits EXACTLY determines how the money needs to be split:
$6350 needs to be invested at 8%, and the remaining $3650 at 6%.
