Question

Set up the system of equations and then solve it by using an inverse matrix. One safe investment pays 10% per year, and a more risky investment pays 18% per year. A woman has $150,400 to invest and would like to have an income of $20,000 per year from her investments. How much should she invest at each rate? 10% rate $ 18% rate $?

Answer 1

Has been explained given below

Explanation:

pays per year = 10%

=the safer investment

1504-x=riskier. Units in thousands.

.10 x+ 0.18(1540-x)=20

.10 x + (277.2-.18 x)=20

-0.08 x=-257.2

x=3215 or $321500

other is $118250

32150*10%=$ 3215

118250*18%=$21285