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alexandr402
19 days ago
11

A retired woman has $180,000 to invest. she has chosen one relatively safe investment fund that has an annual yield of 9% and an

other, riskier fund that has a 13% annual yield. how much should she invest in each fund if she would like to earn $18,000 per year from her investments?
Business
1 answer:
Nady [2.9K]19 days ago
6 0
Solution:
Denote the investment in the 9% scheme as x and in the 13% scheme as y.
x + y = 180000 --equation 1
0.09x + 0.13y = 18000 --equation 2
To balance the equations, multiply equation 1 by 0.09 and equation 2 by 1,
0.09x + 0.09y = 16200 -equation 3
0.09x + 0.13y = 18000 --equation 4
By subtracting equation 4 from equation 3,
-0.04y = -1800
y = 45000
Now substituting y's value back into equation 1,
x + 45000 = 180000
x = 135000
The investment for the 9% scheme = $135,000
The investment for the 13% scheme = $45,000
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