Annual percentage

Question

A retired woman has $260,000 to invest. She had chosen one safe investment fund that had a annual yield of 9% and another riskier fund that has a 13% annual yield. How much should she invest in each fund if she would like to earn $26,000 per year from her investments?

9% = $?

13%=$?

Answer 1

Let x = amount invested at 9%

(260,000-x) = amount invested at 13%

Then .09x + .13(260,000-x) = 26,000 or .04x = 7,800

So, x = $195,000 (Invested at 9%)

260,000-x = $65,000 (Invested at 13%)