You have $250,000 in an ira individual retirement account at the time you retire. you have the option this money in two funds: fund a pays 2.8 annually and fund b pays 78% annually. how should you divide your money between fund a and fund b to produce an annual interest income of $10,000? of investing?

So to start off with this problem, let us call the amount invested in Plan A and B as a and b respectively.

So equation 1: a + b = 250,000

Next, we need to get an equation which is equal to 10,000. So the interest rate in plan a + interest rate in plan b would be equal to 10,000. Rewriting this sentence will give us:

Equation 2: .028a + 0.078b = 10,000

Rewrite the first equation into a = 250,000 - b, and then plug the value into equation 2.

.028(250,000 - b) + 0.078b = 10,000

7,000 - 0.028b + 0.078b = 10,000
-0.028b + 0.078b = 10,000 - 7,000
0.05b = 3,000
b = $60000 amount invested at 2.8% while 
250,000 - 60,000 = $190,000 is the amount invested at 7.8%

Bis the correct answer

(-14+3/2b) - (1+8/2b) = -5 -5/2b(-10+b) + (7b-5) = 8b-15(7/2b-3) - (8+6b) = -5/2b-11(5+2b) + (2b+3/2) = 4b+ 13/2