You have $500,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing this money in two funds: Fund A pays 2.5% annually and Fund B pays 7.5% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $28,000? You should invest $ in Fund A and $ in Fund B.

Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter2: Equations, Inequalities, And Problem Solving
Section2.S: Summary
Problem 8S: What interest rate would you need to get to double an investment of 200 in eight years?
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You have $500,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing this money in two funds: Fund A pays 2.5%
annually and Fund B pays 7.5% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $28,000?
You should invest $
in Fund A and $ in Fund B.
Transcribed Image Text:You have $500,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing this money in two funds: Fund A pays 2.5% annually and Fund B pays 7.5% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $28,000? You should invest $ in Fund A and $ in Fund B.
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