SOLUTION: John Page invested 11000 in an account that pays 12 percent simple interest. How much additional money must be invested in an account that pays 15 percernt simple interest so that
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: John Page invested 11000 in an account that pays 12 percent simple interest. How much additional money must be invested in an account that pays 15 percernt simple interest so that
Log On
Question 32274: John Page invested 11000 in an account that pays 12 percent simple interest. How much additional money must be invested in an account that pays 15 percernt simple interest so that the average return on two investments amounts to 13 percent? Answer by mbarugel(146) (Show Source):
You can put this solution on YOUR website! Hello!
Let's call X to the additional amount he must invest. The total interest received from both investments will be (12% of the $11,000 and 15% of the $X). Also, he wants his average return to be 13%. This means that his total interest should be (13% on the total invested amount). Since he wants both this expression to be equal, we get the equation:
And now we just isolate X:
We conclude that he should invest an additional $5,500 in the 15% account.
(