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4. Suppose you have $50,000 to invest in two funds. The first is a high-risk Fund A that pays 12% yearly interest, unless it loses
4. Suppose you have $50,000 to invest in two funds. The first is a high-risk Fund A that pays 12% yearly interest, unless it loses all its money. The second Fund B is safer, and pays 6% interest yearly. You plan to withdraw all the money from Fund A at the end of year #1, and put it into Fund B, adding it to the money already there. You then withdraw all your money at the end of the second year. Let A be the $ invested into Fund A, and B be the $ invested initially into Fund B. And let's assume you did NOT lose your money in Fund B. (i) Just to see that you understand the question, find the money you have at the end of two years if A=20,000 and B=30,000. (ii) Suppose when you are all down, at the end of two years, you have made exactly 16% profit. How much money do you have at the end? (iii) Now set up a system of two equations in the variables A and B, in the case where you end up with the amount in (ii). (iv) Finally, solve (iii) for A and B. Show all your work
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