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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%.
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THIS IS A BAD/INCORRECT PROBLEM!!!
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