Question

An investor wants to receive $1,000 dollars annually from two investments. He has put $4,500 in money market account 4% annual simple interest. How much should he invest in a stock fund that pays 10% annual simple interest to achieve this goal?

Answer 1

Set this up as an equation.

(4500*.1)+(.1*x)=1000

solve for x to get your answer.

Answer 2

Thank you very much!

Answer 3

Oops, I made a mistake..

(4500*.04)+(.1*x)=1000

Answer 4

ok thanks for the correction, I appreciate that!