document.write( "Question 1141702: You have $1000 to invest in two different accounts. To save the money you need for college, you need to average 6.1 percent interest. If the two accounts pay 3 percent and 7 percent interest, how much should you invest in each account? \n" ); document.write( "

Algebra.Com's Answer #762299 by greenestamps(13200) $\"\"$ $\"About$

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\n" ); document.write( "Here is an alternative to the standard algebraic solution method shown by the other tutor.

\n" ); document.write( "(1) Picture the three percentages 3, 6.1, and 7 on a number line.

\n" ); document.write( "(2) Imagine walking from 3 towards 7 on the number line, stopping when you reach 6.1. What fraction of the distance have you walked?
\n" ); document.write( " $\"%286.1-3%29%2F%287-3%29+=+3.1%2F4+=+31%2F40\"$

\n" ); document.write( "(3) That fraction is the fraction of the total that must be invested at the higher rate.

\n" ); document.write( "(31/40)*$1000 = 31*$25 = $775.

\n" ); document.write( "ANSWER: $775 at 7%; $225 at 3%.

\n" ); document.write( "Note that split gives you an average interest rate of EXACTLY 6.1%. In reality, the requirement would be to have an average of AT LEAST 6.1%; that would mean the amount invested at the higher rate would have to be AT LEAST $775. \n" ); document.write( "

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