SOLUTION: You have $750,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing money in two funds: Fund A pays 4.1% annually and Fund B pays 6

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: You have $750,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing money in two funds: Fund A pays 4.1% annually and Fund B pays 6      Log On


   

Question 724216: You have $750,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing money in two funds: Fund A pays 4.1% annually and Fund B pays 6.6% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $15000?
Answer by checkley79(3341) About Me  (Show Source):
You can put this solution on YOUR website!
.066X+.041(750,000-X)=15,000
.066X+30,750-.041X=15,000
.025X=15,000-30,750
.025X=-15,750
X=-15,750/.025
X=-630,000
SOMETHING IS WRONG WITH THIS DATA.
INVESTING ALL THE MONEY @ THE LOWEST RATE (4.1%) YIELDS:
.041*750,000=$30,750