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.


1 Expert Answer


GERALD H. answered • 03/08/20

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