Question 1087071: Joey has S500,000. If he invest at S300000 at 9% interest at what rate must he invest the remaining S200,000 so that the two investments yield more than S47,000 annual interest?
Found 2 solutions by mathmate, MathTherapy:
Answer by mathmate(429)   (Show Source):
You can put this solution on YOUR website! Question:
Joey has S500,000. If he invest at S300000 at 9% interest at what rate must he invest the remaining S200,000 so that the two investments yield more than S47,000 annual interest?
Solution:
Assuming the interest is not compounded, or calcualtions are required for the first year only.
Then interest from $300,000 = $300,000*0.09=$27,000.
Additional interest required >= $47,000-27,000=$20,000
This has to come from a $500,000-$300,000=$200,000 investment, therefore
interest rate >= $20,000/$200,000 = 0.1 = 10%
The minimum interest rate required is 10% to earn a total of minimum $47,000 in interests.
Answer by MathTherapy(10556)  (Show Source):
You can put this solution on YOUR website!
Joey has S500,000. If he invest at S300000 at 9% interest at what rate must he invest the remaining S200,000 so that the two investments yield more than S47,000 annual interest?
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