SOLUTION: A businessman wishes to invest $20,000 in two different funds which yield annual profits of 12 ½ % and 14%, respectively. Find how much he should invest in each in order to make a
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Question 866983: A businessman wishes to invest $20,000 in two different funds which yield annual profits of 12 ½ % and 14%, respectively. Find how much he should invest in each in order to make an annual profit of $2710. Answer by mananth(16946) (Show Source):
You can put this solution on YOUR website! Part I 12.50% per annum ------------- Amount invested =x
Part II 14.00% per annum ------------ Amount invested = y
20000
Interest----- 2710.00
Part I 12.50% per annum ---x
Part II 14.00% per annum ---y
Total investment
x + 1 y= 20000 -------------1
Interest on both investments
12.50% x + 14.00% y= 2710
Multiply by 100
12.5 x + 14 y= 271000.00 --------2
Multiply (1) by -12.5
we get
-12.5 x -12.5 y= -250000.00
Add this to (2)
0 x 1.5 y= 21000
divide by 1.5
y = 14000
Part I 12.50% $ 6000
Part II 14.00% $ 14000
