SOLUTION: A woman has $19,000 to invest in two funds that pay simple interest at the rates of 4% and 6% per year. Interest on the 4% fund is tax-exempt; however, income tax must be paid on i
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Question 542951: A woman has $19,000 to invest in two funds that pay simple interest at the rates of 4% and 6% per year. Interest on the 4% fund is tax-exempt; however, income tax must be paid on interest on the 6% fund. Being in a high tax bracket, the woman does not wish to invest the entire sum in the 6% account. Is there a way of investing the money so that she will receive $1000 in interest at the end of one year? I have tried x+y=19000 and 0.4x+0.6y=1000... I have also tried x+y=1000 and 0.4x+0.6y=19000. Answer by jpg7n16(66) (Show Source):
You can put this solution on YOUR website! "I have tried x+y=19000 and 0.4x+0.6y=1000"
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Have you tried x+y=19,000 and 0.04x+0.06y=$1000?
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Subtract: , so
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Easier:
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