Asked by gaurav
1. You have $55000 to invest, and two funds you would like to invest in. The You-Risk-It Fund yields 13% interest. The Extra-Dull Fund yields 7% interest. Because of the college financial aid implications, you don’t think you can afford to earn more than $6500 in interest income this year. How should you put in each fund?
Answers
Answered by
Henry
Invest $X @ 13% in You-Risk-it fund.
Invest$(55,000-X) @ 7% in Extra-Dull Fund.
0.13x + 0.07(55,000-x) = $6500,
0.13x + 3850 - 0.07x = 6500,
0.06x = 2650,
X = $44,166.67. Invested @ 13%.
(55,000 - 44,166.67) = $10,833.33 Invested @ 7%.
Invest$(55,000-X) @ 7% in Extra-Dull Fund.
0.13x + 0.07(55,000-x) = $6500,
0.13x + 3850 - 0.07x = 6500,
0.06x = 2650,
X = $44,166.67. Invested @ 13%.
(55,000 - 44,166.67) = $10,833.33 Invested @ 7%.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.