A retired woman has $100,000 to invest. She wants to invest in two funds: one with a 9% annual yield and another with a 13% annual yield. The goal is to earn $10,000 per year. We need to find out how much she should invest in each fund.

AlgebraSystems of EquationsLinear EquationsWord ProblemFinancial Mathematics
2025/5/18

1. Problem Description

A retired woman has 100,000toinvest.Shewantstoinvestintwofunds:onewitha9100,000 to invest. She wants to invest in two funds: one with a 9% annual yield and another with a 13% annual yield. The goal is to earn 10,000 per year. We need to find out how much she should invest in each fund.

2. Solution Steps

Let xx be the amount invested in the 9% fund, and yy be the amount invested in the 13% fund. We can set up two equations based on the given information:
Equation 1 (Total Investment): x+y=100000x + y = 100000
Equation 2 (Total Income): 0.09x+0.13y=100000.09x + 0.13y = 10000
We can solve this system of equations. First, solve Equation 1 for xx:
x=100000yx = 100000 - y
Substitute this expression for xx into Equation 2:
0.09(100000y)+0.13y=100000.09(100000 - y) + 0.13y = 10000
90000.09y+0.13y=100009000 - 0.09y + 0.13y = 10000
0.04y=1000090000.04y = 10000 - 9000
0.04y=10000.04y = 1000
y=10000.04y = \frac{1000}{0.04}
y=25000y = 25000
Now, substitute the value of yy back into the equation for xx:
x=10000025000x = 100000 - 25000
x=75000x = 75000
So, the woman should invest 75,000inthe975,000 in the 9% fund and 25,000 in the 13% fund.

3. Final Answer

The woman should invest 75,000inthe975,000 in the 9% fund and 25,000 in the 13% fund.

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