You have 250,000 in an ira at the time you retire. you have the option of investing this money in two funds. fund a pays 1.2% annually and fund b pays 6.2% annually. how should you divide your money between fund a and fund b to produce and annual interest income of $8,000?

Let x be the amount of money, you fund in Fund A and y be the amount of mone yyou fund in Fund B.

1. You have 250,000 In an IRA at the time you retire and want to invest this money into Funds A and B, then

2. Fund A pays 1.2% (as a decimal 1.2% is 0.012) annually, then is annual interest income in Fund A.

Fund B pays 6.2% (as a decimal 6.2% is 0.062) annually, then is annual interest income in Fund B.

Since Fund A and Fund B produce an annual interest income of $8,000, then

3. Solve the system of equations:

Express x from first equation and substitute it into the second equation

Multiply this equation by 1000:

Then

you have to fund $150,000 in Fund A and $100,000 in Fund B.

step-by-step explanation:

let

we know that

the y-intercept is the y-coordinate of the point when the value of x is equal to zero

so

the y-coordinate of the point a is the y-intercept

the answer part a) is

the value of y-intercept is

part b) find the slope m

we know that

the value of the slope is equal to

substitute the values

therefore

the answer part b) is

the value of the slope is equal to

the general answer is

the slope is

the value of y-intercept is