SOLUTION: a total of $25000 is invested in two funds paying 6% and 8.5% simple interest. the 6% investment has a lower risk. the investor wants a yearly interest income of $2000 from the two
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Question 510929: a total of $25000 is invested in two funds paying 6% and 8.5% simple interest. the 6% investment has a lower risk. the investor wants a yearly interest income of $2000 from the two investments.
a)write a system of equations in which one equation represents the total amount invested and the other equation represents the $2000 required in interest. let x and y represent the amounts invested at 6% and 8.5% respectively. Found 2 solutions by stanbon, scott8148:Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! a total of $25000 is invested in two funds paying 6% and 8.5% simple interest. the 6% investment has a lower risk. the investor wants a yearly interest income of $2000 from the two investments.
a)write a system of equations in which one equation represents the total amount invested and the other equation represents the $2000 required in interest. let x and y represent the amounts invested at 6% and 8.5% respectively.
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Equations:
Quantity: x + y = 25000
Interest:0.06x + 0.085 = 2000
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Multiply quantity by 60
Multiply interest by 1000
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60x + 60y = 60*25000
60x + 85y = 2000000
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Subtract and solve for "y":
25y = 500000
y = $20,000 (amt. invested at 8.5%)
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x = $5000 (amt. invested at 6%)
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Cheers,
Stan H.
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