SOLUTION: Fred and George have $40,000 to invest. If they invest $16,000 at 12% simple interest and $14,000 at 8% at what rate should they invest the remainder in order to have a yearly inco
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Question 1107457: Fred and George have $40,000 to invest. If they invest $16,000 at 12% simple interest and $14,000 at 8% at what rate should they invest the remainder in order to have a yearly income of $4,000 from their investments? Answer by ikleyn(52925) (Show Source):
r*(40000 - 16000 - 14000) = 4000 - 0.12*16000 - 0.08*14000.
Simplify and solve for r, which is the unknown rate under the question in the decimal form.
