Question 1108877: Suppose that Eustace Scrubb has $14,000 to invest, he puts $8,000 into an account that earns 9.5% simple interest. If Eustace wants to earn 7% interest on his total investment each year, at what rate should he invest the remainder of his money? Round to the nearest hundredth of a percent.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Suppose that Eustace Scrubb has $14,000 to invest, he puts $8,000 into an account that earns 9.5% simple interest. If Eustace wants to earn 7% interest on his total investment each year, at what rate should he invest the remainder of his money? Round to the nearest hundredth of a percent.
-----
Equation:
interest + interest = interest
0.095*8000 + (x/100)*6000 = 0.07(14000)
--------------------------------
760 + 60x = 980
----
60x = 220
x = 3.666..
------
Answer:: (3 2/3)%
--------------
Cheers,
Stan H.
------------
|
|
|
