LEX K.

asked • 07/25/16

Financial Mixture problem help

Ethan has a total college account of $175,000. He is going to split this into two different funds, one which pays 6.5% and the other that pays 8%. How much should he put in each account so that he gets the $12,000 in interest per year that he needs to pay for college?

Jason L.

Let A & B be the amount put into each account.
 
.06 * A + .08 * B = 12k
A + B = 175k
 
So from equation 2, A = 175k -B.  Now plug that into eq 1:
 
.06(175k-B) + .08B = 12k
10.5k - .06B + .08B = 12k
.02B = 1500
B = 75k
 
Plus that back into eq 2 to get A = 100k.
Report

07/26/16

1 Expert Answer

By:

GERALD H. answered • 03/08/20

Tutor
New to Wyzant

Friendly , Patient Tutor Ready To Assist Algebra 1 and 2 Students

Still looking for help? Get the right answer, fast.

Ask a question for free

Get a free answer to a quick problem.
Most questions answered within 4 hours.

OR

Find an Online Tutor Now

Choose an expert and meet online. No packages or subscriptions, pay only for the time you need.