suppose you have $600,000 to invest, part at 12% and the remainder in a less risky investment at 6%.

Question

If your investment goal is to have an annual income of $60,000 in thousands of dollars and let B be the amount invested at 6% in thousands of dollars.

 

write a system of equations that will help you find the amount that should be invested in each account. 

 

how much do you need to invest in each account to earn an annual income of $60,000

 

if your investment goal is to have an annual income of "at least" $60,000, how much should you allocate in each investment? write a system of inequalities. 

Answer 1

Let B equal what is invested at 6% which means 600,000-B (or for this question, we can call this A)is what is invested at 12%

 

Earnings would be defined as .06*(B) +.12*(600,000-B)=60,000

 

.06B+.12*600,000-.12*B=60,000

.06B+72,000-.12B=60,000

-.06B+72,000=60,000

-.06B=-12,000

B=200,000

A=400,00@

or

 

.06*(B)+.12(A)>=60,000

A+B=600,000