Question 1190055
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Vern sold his 1964 Ford Mustang for $55,000 and wants to invest the money to earn him 6.4% interest 
per year. He will put some of the money into Fund A that earns 4% per year and the rest in Fund B 
that earns 10% per year. How much should he invest into each fund (in dollars) if he wants to earn 
6.4% interest per year on the total amount?
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<pre>
He invests $55000 partly at 10% and partly at 4%.


Let x dollars be the amount invested at 10%;

then the amount invested at 4% is (55000-x) dollars.


The total annual interest equation is

    0.1x + 0.04*(55000-x) = 0.064*55000.


From this equation

    x = {{{(0.064*55000 - 0.04*55000)/(0.1-0.04)}}} = 22000.


<U>ANSWER</U>.  $22000 shoud be invested at 10%, and the rest 55000-22000 = 33000 dolars invested at 4%.


<U>CHECK</U>.   0.1*22000 + 0.04*33000 = 3520, the same as 0.064*55000 = 3520.    ! correct !
</pre>

Solved.


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It is a standard and typical problem on investments.


If you need more details,  &nbsp;or if you want to see other similar problems solved by different methods, &nbsp;look into the lesson 

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/coordinate/lessons/Using-systems-of-equations-to-solve-problems-on-investment.lesson>Using systems of equations to solve problems on investment</A>

in this site.


You will find there different approaches &nbsp;(using one equation or a system of two equations in two unknowns), &nbsp;as well as 
different methods of solution to the equations &nbsp;(Substitution, &nbsp;Elimination).


Also, &nbsp;you have this free of charge online textbook in ALGEBRA-I in this site

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson>ALGEBRA-I - YOUR ONLINE TEXTBOOK</A>.


The referred lesson is the part of this online textbook under the topic &nbsp;"<U>Systems of two linear equations in two unknowns</U>".



Save the link to this online textbook together with its description


Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson


to your archive and use it when it is needed.