SOLUTION: Paul has $28,000 to invest. His intent is to earn 11% interest on his investment. He can invest part of his money at 8% interest and part at 12% interest. How much does Paul need t

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Question 1107031: Paul has $28,000 to invest. His intent is to earn 11% interest on his investment. He can invest part of his money at 8% interest and part at 12% interest. How much does Paul need to invest in each option to make a total of 11% return on his $28,000?
Found 2 solutions by josmiceli, ikleyn:
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
They must be talking about simple interest.
For the 8% investment:
Also, I assume the time for the investment is 1 yr
+I%5B1%5D+=+P%5B1%5D%2Ar%5B1%5D%2At+
+I%5B1%5D+=+P%5B1%5D%2A.08%2A1+
(1) +I%5B1%5D+=+.08P%5B1%5D+
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For the 12% investment:
+I%5B2%5D+=+P%5B2%5D%2A.12%2A1+
(2) +I%5B2%5D+=+.12P%5B2%5D+
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(3) +P%5B2%5D+=+28000+-+P%5B1%5D+
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(4) +I%5B2%5D+=+.11%2A28000+-+I%5B1%5D+
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There are 4 equations and 4 unknowns,
so it is solvable. Find +P%5B1%5D+ and +P%5B2%5D+
and thoses are the answers



Answer by ikleyn(52765) About Me  (Show Source):
You can put this solution on YOUR website!
.
interest + interest       = total interest

0.08*x   + 0.12*(28000-x) = 0.11*28000.    (where x = amt at 8%).


It is the equation in one unknown.


I am sure you can solve it without any help.

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