Answer:
He should invest $31,000 in tax-free to get a return of $4,790
Step-by-step explanation:
Let the amount he will invest in tax-free be $x while the amount in money market be $y
Adding both we have the total;
x + y = 60,000 ••••••••(i)
Then let’s work with the percentages;
7.5% of x + 8.5% of y = 4,790
7.5/100 * x + 8.5/100 * y = 4,790
7.5x/100 + 8.5y/100 = 4790
multiply through by 100
7.5x + 8.5y = 479000 ••••••(ii)
From i, y = 60,000 - x
Put this into ii
7.5x + 8.5(60,000-x) = 479000
7.5x + 510,000 -8.5x = 479000
8.5x - 7.5x = 510,000 - 479,000
x = $31,000
