Question 178564
ok. you are just slightly off on your thinking. What your looking for is how much money is going to go into each Plan out of the $500,000. Lets call the amount invested in Plan A and Plan B, a and b respectively
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so the total of these will be 500,000, not 34000.
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so we have :
a+b=500000..........eq 1
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next we do have something that does equal 34000. the interest rate of Plan A times the amount invested in plan A plus the interest rate of Plan B times the amount invested in Plan B will equal the interest income which is 34000
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.052a+.077b=34000...eq 2
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rewrite eq 1 to a=500000-b and plug that value into eq 2
:
.052(500000-b)+.077b=34000
:
26000-.052b+.077b=34000
:
-.25b=-8000
:
${{{highlight(b=320000)}}}amount invested at 5.2%
:
${{{highlight(500000-320000=180000)}}}amount invested at 7.7%