SOLUTION: i have 10,000.00 and I decided to invest some money in a savings account that pays 2% annum and the rest in a stock fund paying 10% per annum. I want m investments to yeild 7% per
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Question 779543: i have 10,000.00 and I decided to invest some money in a savings account that pays 2% annum and the rest in a stock fund paying 10% per annum. I want m investments to yeild 7% per annum. How much should I put into each acount? Answer by mananth(16946) (Show Source):
You can put this solution on YOUR website! yield 7%
7% on 10,000=700
Part I 2.00% per annum ------------- Amount invested =x
Part II 10.00% per annum ------------ Amount invested = y
10000
Interest----- 700.00
Part I 2.00% per annum ---x
Part II 10.00% per annum ---y
Total investment
x + 1 y= 10000 -------------1
Interest on both investments
2.00% x + 10.00% y= 700
Multiply by 100
2 x + 10 y= 70000.00 --------2
Multiply (1) by -2
we get
-2 x -2 y= -20000.00
Add this to (2)
0 x 8 y= 50000
divide by 8
y = 6250 - x)
Part I 2.00% $ 3750
Part II 10.00% $ 6250
