1. ## Linear Equations

You plan to invest $25,000in two funds paying 3% and 4½ % simple interest. (There is more risk in the 4½ % fund.) Your goal is to obtain a total annual interest income of$1,000 from the investments. What is the smallest amount you can invest in the 4½ % fund in order to meet your objective?

How can we do this? How to make the equation/

2. Originally Posted by Amy
You plan to invest $25,000in two funds paying 3% and 4½ % simple interest. (There is more risk in the 4½ % fund.) Your goal is to obtain a total annual interest income of$1,000 from the investments. What is the smallest amount you can invest in the 4½ % fund in order to meet your objective?

How can we do this? How to make the equation/
Hello,

let x be the amount with 3% interest rate then

(25000-x) is the amount with the 4.5% interest rate.

Therefore you have to solve for x:

$0.03 \cdot x + 0.045 \cdot (25000-x) = 1000$

I've got \$8,333.33. But please check my calculations!