Math Problem Statement
One safe investment pays 10% per year, and a more risky investment pays 18% per year. A woman who has $140,900 to invest would like to have an income of $19,130 per year from her investments. How much should she invest at each rate? 10% $ 18% $
Solution
Let's define the amounts the woman should invest at each rate as follows:
- Let be the amount invested at 10%.
- Let be the amount invested at 18%.
We know the following:
- The total investment is $140,900, so:
- The total income from both investments should be $19,130. The income from the 10% investment is , and the income from the 18% investment is . Thus:
Now, we can solve this system of equations:
Equation 1:
Solve for :
Equation 2:
Substitute into the second equation: Now simplify and solve for :
So, she should invest $77,900 at 10%.
To find , substitute into the first equation:
Final answer:
- She should invest $77,900 at 10%.
- She should invest $63,000 at 18%.
Would you like further details or have any other questions?
Here are some related questions for further practice:
- What if the total investment amount was $150,000? How would the investment amounts change?
- How would the amounts change if the income requirement was $20,000 per year?
- What would the total income be if the entire $140,900 was invested at 18%?
- If the income requirement was reduced to $18,000, how much would she invest at each rate?
- How would the amounts change if the risky investment paid 20% per year?
Tip: When solving systems of equations, substitution is useful when one variable can easily be expressed in terms of the other.
Ask a new question for Free
By Image
Drop file here or Click Here to upload
Math Problem Analysis
Mathematical Concepts
Algebra
Linear Equations
System of Equations
Formulas
x + y = 140,900
0.10x + 0.18y = 19,130
Theorems
Substitution Method
Suitable Grade Level
Grades 10-12
Related Recommendation
Solving Investment Allocation: Balancing 10% and 18% Interest Rates
System of Equations for Investment Problem: Solving 3 Variables
Calculate Investments for $22,300 Interest with 8%, 7%, and 10% Yields
Solve for Two Investments with Different Interest Rates
Calculate Investments and Interest: Solving a System of Equations