SOLUTION: Sam Yates invested $15000 in an account that pays 10% simple interst. How much additional money must be invested in an account that pays 13% simple interest so that the average ret
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Question 216656: Sam Yates invested $15000 in an account that pays 10% simple interst. How much additional money must be invested in an account that pays 13% simple interest so that the average return on the two investments amounts to 11%. Answer by ankor@dixie-net.com(22740) (Show Source):
You can put this solution on YOUR website! Sam Yates invested $15000 in an account that pays 10% simple interest.
How much additional money must be invested in an account that pays 13% simple
interest so that the average return on the two investments amounts to 11%.
:
Let x = amt of 13% investment
:
Treat as a simple mixture problem
.10(15000) + .13x = .11(x+15000)
1500 + .13x = .11x + 1650
.13x - .11x = 1650 - 1500
.02x = 150
x =
x = $7500 needs to be invested at 13%
:
:
Check solution in original equation:
.10(15000) + .13(7500) = .11(7500+15000)
1500 + 975 = .11(22500)
2475 = 2475; confirms our solution
