SOLUTION: Lisa deposits $2000 in an account that pays 3% simple interest, and $3000 in a second account which has a higher interest rate but is more risky. What interest rate must she get o
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-> SOLUTION: Lisa deposits $2000 in an account that pays 3% simple interest, and $3000 in a second account which has a higher interest rate but is more risky. What interest rate must she get o
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Question 981764: Lisa deposits $2000 in an account that pays 3% simple interest, and $3000 in a second account which has a higher interest rate but is more risky. What interest rate must she get on the second account in order to earn at least $270 in interest for the year? Answer by macston(5194) (Show Source):
You can put this solution on YOUR website! .
I=interest rate on second account
.
0.03($2000)+I($3000)=$270
$60+I($3000)=$270
I($3000)=$210
I=$210/$3000
I=0.07
.
ANSWER: She must earn at least 7% interest on the second account.
