SOLUTION: Ruth invested a certain amount at 8% and twice that amount at 9%. If the two investments yield an annual income of 125,000, how much did Ruth invest in each?
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: Ruth invested a certain amount at 8% and twice that amount at 9%. If the two investments yield an annual income of 125,000, how much did Ruth invest in each?
Log On
Question 847206: Ruth invested a certain amount at 8% and twice that amount at 9%. If the two investments yield an annual income of 125,000, how much did Ruth invest in each? Answer by swincher4391(1107) (Show Source):
Accumulated value of fund 1 for 1 year: 1.08*x
Accumulated value of fund 2 for 1 year: 1.09*(2x)
Total accumulated fund = 125000
So 1.08x + 1.09(2x) = 125000
Solving this we get that x = 38343.6 (Fund 1) and 2x = 76687.2 (Fund 2)
