Question 1036937: Paul has $80,000 to invest. His intent is to earn 15% interest on his investment. He can invest part of his money at 6% interest and part at 18% interest. How much does Paul need to invest in each option to make a total 15% return on his $80,000?
6% interest $
18% interest $
Found 2 solutions by stanbon, addingup:
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Paul has $80,000 to invest. His intent is to earn 15% interest on his investment. He can invest part of his money at 6% interest and part at 18% interest. How much does Paul need to invest in each option to make a total 15% return on his $80,000?
Quantity:: s + e = 80,000
Interest:: 0.06s + 0.18e = 0.15*80,000
-------------------------------------
Modify for elimination:
6s + 6e = 6*80,000
6s + 18e = 15*80,000
--------------------------
Subtract and solve for "e":
12e = 9*80,000
e = (3/4)(80,000)
e = $60,000 (amt. to invest at 18%)
---------------
Solve for "s"
s = 80,000 - e = 80,000-60,000 = $20,000 (amt. to invest at 6%)
--------------
Cheers,
Stan H.
-------------
Answer by addingup(3677)  (Show Source):
You can put this solution on YOUR website! Let's call the amount to invest at 6% x. Then, the amount at 18% will be 80,000-x:
0.06x+0.18(80,000-x) = 0.15(80,000)
0.06x+14,400-0.18x = 12,000
-0.12x = -2,400 Divide both sides by 0.12 and remember -/- = +
x = 20,000 this is the amount at 6%. And the amount at 18%:
80,000-20,000 = 60,000 is at 18%
|
|
|
