A retired contractor has $120,000 to invest in two investment funds. Fund 1 is a relatively safe investment with an annual return of 9% and Fund 2 is more risky with an annual return of 13%. Her goals are to invest all her funds and to earn $12,000 in annual income. You must determine how much should she invest in each fund to achieve her goals.

Question

A retired contractor has $120,000 to invest in two investment funds. Fund 1 is a relatively safe investment with an annual return of  9% and Fund 2  is more risky with an annual return of 13%.  Her goals are to invest all her funds and to earn $12,000 in annual income.  You must determine how much should she invest in each fund to achieve her goals.

anonymous · Answer

a.) Indicate below the equations you must use to work this problem, and explain what each equation tells you in full sentences.
b.) Solve the problem for the investment amounts.
c.) Then make sure you check that your solution accomplishes her goals