SOLUTION: "A taxi driver would like to earn $5,000 per year in supplemental income from an inheritance of $80,000. If the driver invests $20,000 in a mutual fund paying 8%, what rate must he
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Question 900416: "A taxi driver would like to earn $5,000 per year in supplemental income from an inheritance of $80,000. If the driver invests $20,000 in a mutual fund paying 8%, what rate must he earn on the remainder to achieve his goal?"
I'm just having trouble putting the information given into an equation to be solved.
You can put this solution on YOUR website! a+b=80000
a=20000
b=60000
.08*20000+x*60000=5000
.08*20+x*60=5
.08*4+x*12=1
.32+12x=1
12x=.68
x=0.0566667=5.66667%
check
.08*20000+.0566667*60000=5000.002
ok
