SOLUTION: Wendy, a loan officer at a bank, has 1,000,000 dollars to lend and is required to obtain an average return of 18% per year. If she can lend at the rate of 19% or at the rate of 16

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Question 51678This question is from textbook
: Wendy, a loan officer at a bank, has 1,000,000 dollars to lend and is required to obtain an average return of 18% per year. If she can lend at the rate of 19% or at the rate of 16%, how much can she lend at the 16% and still meet her requirement? This question is from textbook

Answer by checkley71(8403) About Me  (Show Source):
You can put this solution on YOUR website!
.18*1,000,000=180,000 THUS SHE NEEDS TO INVEST A*.19+(1,000,000-A).16=180,000 OR .19A+160,000-.16A=180,000 OR .03A=180,000-160,000 OR .03A=20,000 OR
A=20,000/.03 OR A=$666,666.67 INVESTED @ 18% & $333,333.33 INVESTED @ 16%