Mr. Hoffman is investing in two funds.
One fund will pay interest, and a riskier second fund will pay
interest.
Find the least amount Mr. Hoffman can invest in the risky fund and still earn at least after one year.
Let be the amount Mr. Hoffman invests in the risky fund.
Therefore, the amount invests in the another fund is .
Hence the inequality is .
Solve the inequality.
\ (Original inequality)
(Substitute
and
)
(Distributive property:
)
(Combine like terms)
(Subtract
from each side)
(Apply additive inverse property:
)
(Divide each side by
)
(Cancel common terms)
So, a minimum of should be invested in the risky fund to earn at least
.
A minimum amount is should be invested in the risky fund.