SOLUTION: Marcia has $18,000 to invest in two different investment. she invested $10,000 at 4% yearly interest in one investment. at what rate must she in vest the remainder so that she ea
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Question 1112018: Marcia has $18,000 to invest in two different investment. she invested $10,000 at 4% yearly interest in one investment. at what rate must she in vest the remainder so that she earns a yearly interest of more then $700?
The interest generated by the 1-st investment is 0.04*10000 = 400 dollars.
She wants to get at least 700 - 400 = 300 dollars more.
Hence, the second investment of 18000-10000 = 8000 dollars should generate at least 300 dollars interest:
x*8000 >= 300 ====> x >= = 0.0375.
Answer. She must invest the second investment at least 3.75%.
