SOLUTION: Investment
You plan to invest $25,000 in two funds paying 3% and 4 1/2% simple interest. YOur goal is to obtain a total annual interest income of $1,000 from the investments. What
Algebra.Com
Question 84984: Investment
You plan to invest $25,000 in two funds paying 3% and 4 1/2% simple interest. YOur goal is to obtain a total annual interest income of $1,000 from the investments. What is the smallest amount you can invest in the 4 1/2 % fund in order to meet your objective?
The answer is $16,666.67 I want someone else to work this one to see if I worked it right.....thanks!
Found 2 solutions by stanbon, josmiceli:
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
You plan to invest $25,000 in two funds paying 3% and 4 1/2% simple interest. YOur goal is to obtain a total annual interest income of $1,000 from the investments. What is the smallest amount you can invest in the 4 1/2 % fund in order to meet your objective?
-----------
A(t) = P(1+rt)
Let x be amount invested at 3%; interest = 0.03x
Amount invested at 4 1/2% is (25000-x); interest on this is 0.045(25000-x)
= 1125-0.045x
------------
EQUATION:
interest + interest = 1000
0.03x + 1125-0.045x = 1000
-0.015x = -125
x = $83333.33 (amt invested at 3%)
25000-x = $16,666.67 (amt invested at 4 1/2%)
=============
Cheers,
Stan H.
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
I get the same answer
x = amount invested @ 3%
25000 = amount invested @ 4.5%
amount invested at 4.5% is
RELATED QUESTIONS
You plan to invest $25,000 in two funds paying 3% and 4 1/2% simple interest.(There is... (answered by stanbon)
you plan to invest $40,000 in two funds paying 4.5% and 6% simple interest. your goal is... (answered by rfer)
You plan to invest $19,000 in two funds paying 3% and 4.5
simple interest. (There is... (answered by richwmiller)
You invest $40,000 in two funds paying 3% and 4 1/2% simple interest. The total annual... (answered by stanbon)
you plan to invest $12000 in two funds paying 4.25% and 5.5% simple interest. Yor goal is (answered by checkley71)
suppose you invest $15,000 in two funds paying 11 1/2% and 14% simple interest. the... (answered by mananth)
You invest a total of $12000 in two investments earning 8% and 11.5% simple interest. You (answered by richwmiller)
You are deciding how to invest a total of $20,000 in two funds paying 5.5% or 7.5%... (answered by mananth)
You are deciding how to invest a total of $20,000 in two funds paying 5.5% or 7.5% simple (answered by mananth)