Question 131665This question is from textbook
: A financial planner has a client with $15,000 to invest. If he invests $10,000 in a certificate of deposit paying 11% annual simple interest, at what rate does the remainder of the money need to be invested so that the two investments together yield at least $1600 in yearly interest?
This question is from textbook
Answer by ptaylor(2198)   (Show Source):
You can put this solution on YOUR website! Interest(I) equals Principal(P) times Rate(R) times Time(T) or I=PRT
Let R=rate that remainder of money needs to be invested
$10,000 is invested at 11%
Interest at 11%=$10,000*0.11*1=$1100
And $5000 is invested at R%
Interest at R%=$5000*R*1=$5000R
Now we are told that the two investments together need to yield at least $1600, so our equation to solve is:
$1600=$1100+$5000R subtract $1100 from both sides
$1600-$1100=$5000R collect like terms
$500=$5000R divide both sides by $5000
R=0.1 or 10%
CK
0.11*$10,000+0.10*$5000=$1600
$1100+$500=$1600
$1600=$1600
Hope this helps---ptaylor
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