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Make your assumptions clear and show all work.

A retired contractor has $120,000 to spend in two investment funds. Fund 1 is relatively safe investment with the annual return of 9% and Fund 2 is more risky with the annual return of 13%. Her goals are to spend all her funds and to earn $12,000 in annual income. You should find out how much must she invest in each fund to accomplish her goals.

a.) Point out below the equations you should use to work this problem, and describe what each equation tells you in full sentences.

b.) Solve the problem for investment amounts.

c.) Then make sure you check that your solution achieves her goals.

Business Management, Management Studies

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