You have $500,000 in an IRA (Individual Retirement Account) at the time you retire. You have...

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You have $500,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing this money in two funds: Fund A pays 2.5% annually and Fund B pays 7.5% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $30,000? You should invest $ in Fund A and $ in Fund B. C You have $500,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing this money in two funds: Fund A pays 2.5% annually and Fund B pays 7.5% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $30,000? You should invest $ in Fund A and $ in Fund B. C

Answer rating: 100% (QA)

Let x be the amount invested in Fund A and y be the amount invested in Fund B From the problem we ... View the full answer