SOLUTION: A bus driver wants to earn $3,500 per year in supplemental income from an inheritance of $40,000. If the driver invests $10,000 in a mutual fund paying 8%, what rate must he earn o
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Question 262868: A bus driver wants to earn $3,500 per year in supplemental income from an inheritance of $40,000. If the driver invests $10,000 in a mutual fund paying 8%, what rate must he earn on the remainder to achieve his goal?
Answer by checkley77(12844) (Show Source): You can put this solution on YOUR website!
.08*10,000+X*30,000=3,500
800+30,000X=3,500
30,000X=3,500-800
30,000X=2,700
X=2,700/30,000
X=.09 OR 9% IS THE RATE REQUIRED FOR THE $30,000 INVESTMENT TO MEET HIS GOALS.
PROOF:
.08*10,000+.09*30,000=3,500
800+2,700=3,500
3,500=3,500
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