SOLUTION: Beth has saved $4500. She would like to earn $250 per year by investing her money. She received advice about two different investments: a low-risk investment that pays a 5% annual

Algebra ->  Functions -> SOLUTION: Beth has saved $4500. She would like to earn $250 per year by investing her money. She received advice about two different investments: a low-risk investment that pays a 5% annual       Log On


   

Question 1127783: Beth has saved $4500. She would like to earn $250 per year by investing her money. She received advice about two different investments: a low-risk investment that pays a 5% annual interest and a high-risk investment that pays a 9% annual interest.
How much should Beth invest in each type of investment if she wishes to earn $325 per year?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+I%5B1%5D+=+P%5B1%5D%2Ar%5B1%5D%2At+
+I%5B1%5D+=+P%5B1%5D%2A.05%2A1+
(1) +I%5B1%5D+=+.05P%5B1%5D+
-----------------------------
+I%5B2%5D+=+250+-+I%5B1%5D+
+P%5B2%5D+=+4500+-+P%5B1%5D+
+250+-+I%5B1%5D+=+%28+4500+-+P%5B1%5D+%29%2A.09%2A1+
----------------------------------------------
+250+-+I%5B1%5D+=+405+-+.09P%5B1%5D+
(2) +.09P%5B1%5D+-+I%5B1%5D+=+155+
Plug (1) into (2)
(2) +.09P%5B1%5D+-+.05P%5B1%5D+=+155+
(2) +.04P%5B1%5D+=+155+
(2) +P%5B1%5D+=+3875+
and
+P%5B2%5D+=+4500+-+P%5B1%5D+
+P%5B2%5D+=+625+
------------------------------------
$3,875 in 5% investment
$625 in 9% investment
-------------------------------
You can finish