Question 706368: a woman wants to invest enough to have an annual income of $5,000. If she can invest $20,000 at 8% annual interest, how much more will she have to invest at 6% to achieve her goal?
Answer by hope.green15(2)   (Show Source):
You can put this solution on YOUR website! The first step is to see how much she will make from investing $20,000 @ 8%. So multiply 20,000 * 8% or .08=$1600. So far she will have $1600 and if she wanted to originally make $5000, then she lacks $3400 because $5000-$1600=$3400. Now we just need to find out how much at 6% that she needs in order to get the extra $3400. Divide 3400 by 6%, or .06 and that is how much she would have to invest at 6% in order to make $3400. She needs to invest $56,666.67 at 6% to get the extra $3400 that she needs.
|
|
|
