SOLUTION: Kevin has just inherited $50000. He is going to invest it and use the interest he earns to pay for private schooling for his children. It costs $4300 per year to send his children

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: Kevin has just inherited $50000. He is going to invest it and use the interest he earns to pay for private schooling for his children. It costs $4300 per year to send his children       Log On


   

Question 1147408: Kevin has just inherited $50000. He is going to invest it and use the interest he earns to pay for private schooling for his children. It costs $4300 per year to send his children to the local Christian school. Kevin has found two investment accounts that he likes, one pays an annual interest of 5.4% and the other pays 12.2%. How much should Kevin invest(to the nearest penny) in each account so he earns as close to $4300 per year as possible?
Answer by ikleyn(52879) About Me  (Show Source):
You can put this solution on YOUR website!
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Let x be the amount to invest at 12.2%, in dollars.


Then the amount to invest at 5.4% is (50000-x) dollars.


The total interest is the sum of partial interests.


It gives you an equation


    0.122x + 0.054*(50000-x) = 4300  dollars.


From the equation, express "x" and calculate


    x = %284300-0.054%2A50000%29%2F%280.122-0.054%29 = 23,529.41.


ANSWER.  $23,529.41  should be invested at 12.2%;  the rest,  (50,000 - $23,529.41) = $26,470.59 should be invested at 5.4%.