Question

Fuseina has GH¢40,000.00 to invest. She decided to put part of the money in an account paying 4% interest and the remainder into a stock paying 6%interest. Her financial advisor tells her that the total annual income from these investments should be GH¢2040.00. How much should she invest at each rate?​

Answer 1

GH¢18,000 in the account that pays 4%

GH¢22,000 in stock

Step-by-step explanation:

Let X represents the account that pays a 4% interest rate

Let Y represent the stock that pays a 6% interest rate

Total amount invested=40,000

X+Y=40,000 equation 1

Interest earned on X=X*4%=0.04X

Interest earned on Y=Y*6%=0.06Y

Total interest =2040

0.04X+0.06Y=2040 equation 2

Multiply equation 1 by 0.04

0.04X+0.04Y=(40,000*0.04)

0.04X+0.04Y=1600 equation 3

equation 2- equation 3

0.04X+0.06Y=2040

0.04X+0.04Y=1600

0.02Y=440

Y=440/0.02=22000

substitute 22000 for Y in equation 1

X+22000=40000

X=40000-22000=18000