document.write( "Question 98721: Terry placed $15,000 in an account paying 6%. How much additional money should she deposit at 4% so that the average return on the two investments is 5.5%? \n" ); document.write( "

Algebra.Com's Answer #71967 by ptaylor(2198) $\"\"$ $\"About$

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Interest(I)=Principal(P) times Rate(R) times(T) or I=PRT
\n" ); document.write( "Let P=additional amount of principal needed to be deposited at 4%\r
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\n" ); document.write( "\n" ); document.write( "0.06(15,000)=return for 1 year on the 15,000
\n" ); document.write( "0.04P=return for 1 year on the amount deposited at 4%
\n" ); document.write( "0.055(15000+x)=return for 1 year on the combined deposit
\n" ); document.write( "Now we know that the return on the two separate deposits must equal the return on the combined deposit. So our equation to solve is:\r
\n" ); document.write( "\n" ); document.write( "0.06(15000)+0.04P=0.055(15000+P) get rid of parens
\n" ); document.write( "900+0.04P=825+0.055P subtract 825 and also 0.04P from both sides\r
\n" ); document.write( "\n" ); document.write( "900-825+0.04P-0.04P=825-825+0.055P-0.04P collect like terms\r
\n" ); document.write( "\n" ); document.write( "75=0.015P divide both sides by 0.015\r
\n" ); document.write( "\n" ); document.write( "P=$5000-----------additional amount of principal needed to be deposited at 4%\r
\n" ); document.write( "\n" ); document.write( "CK
\n" ); document.write( "0.06*15000+0.04*5000=0.055*20000
\n" ); document.write( "900+200=1100
\n" ); document.write( "1100=1100\r
\n" ); document.write( "\n" ); document.write( "Hope this helps----ptaylor\r
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