Explanation Given Information: The fund to be divided by Winston is of value $ 60 , 000 where the high-risk funds give a return of 12 % a year and the low-risk funds give a risk of 4 % a year and he wants to receives a supplemental income of $ 30 , 000 a year. Calculation: Let Winston put x amount of funds in the high-risk investments. Therefore, the return generated from the high-risk investments at a return of 12 % a year is given by: x × 12 % Or 12 x 100 ...... (1) The funds deposited in the low risk investments are the funds remained after depositing in the high risk investments. $ 600 , 000 − x The return generated from the low risk investments is: ( $ 600 , 000 − x ) × 4 % Or $ 24000 − 4 x 100 ...... (2) According to the given situation the sum of equation (1) and (2) must be equal to $ 30 , 000 . That is, 12 x 100 + 24000 − 4 x 100 = 30 , 000

Aleks 360 Access Card (18 Weeks) for Beginning & Intermediate Algebra

4th Edition

ISBN: 9780077564018

Author: ALEKS Corporation

Publisher: MCG

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Chapter 4, Problem 47RE

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To calculate: The division of funds Winston should strategize so that he receives a supplemental income of $30,000 a year where the fund to be divided is of value $60,000 when the high risk funds give a return of 12% a year and the low-risk funds give a risk of 4% a year.

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Chapter 4, Problem 46RE

Chapter 4, Problem 48RE

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Chapter 4 Solutions

Aleks 360 Access Card (18 Weeks) for Beginning & Intermediate Algebra

Ch. 4.1 - Determine whether the ordered paired is a solution...Ch. 4.1 - Determine whether the ordered paired is a solution...Ch. 4.1 - Solve the system by the graphing method. y = − 3 x...Ch. 4.1 - Solve the system by the graphing method. y = 2 x −...Ch. 4.1 - Solve the system by the graphing. 5. Ch. 4.1 - Solve the system by the graphing. 6. Ch. 4.1 - a. A______ of linear equations consists of two or...Ch. 4.1 - For Exercises 2-10, determine if the given point...Ch. 4.1 - Prob. 3PE Ch. 4.1 - Prob. 4PE

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The division of funds Winston should strategize so that he receives a supplemental income of $ 30 , 000 a year where the fund to be divided is of value $ 60 , 000 when the high risk funds give a return of 12 % a year and the low-risk funds give a risk of 4 % a year.

Solution Summary: The author explains how Winston should strategize to receive a supplemental income of 30,000 per year.

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To calculate: The division of funds Winston should strategize so that he receives a supplemental income of $30,000 a year where the fund to be divided is of value $60,000 when the high risk funds give a return of 12% a year and the low-risk funds give a risk of 4% a year.

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Chapter 4 Solutions