SOLUTION: After inheriting some money, a woman wants to invest enough to have an annual income of $5,000. If she can invest $20,000 at 8% annual interest, how much more will she have to inve
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-> SOLUTION: After inheriting some money, a woman wants to invest enough to have an annual income of $5,000. If she can invest $20,000 at 8% annual interest, how much more will she have to inve
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Question 703930: After inheriting some money, a woman wants to invest enough to have an annual income of $5,000. If she can invest $20,000 at 8% annual interest, how much more will she have to invest at 7% to achieve her goal? Answer by DrBeeee(684) (Show Source):
You can put this solution on YOUR website! Let x = the amount to invest at 7%
Then you have
(1) .08*20000 + .07x = 5000 or
(2) 1600 + .07x = 5000 or
(3) .07x = 3400 or
(4) x = 3400/.07 or
(5) x = 48571.428571 (repeated)
Let's check this value.
Is (.08*20000 + .07*48571.etc = 5000)?
Is (1600 + 3400 = 5000)?
Is (5000 = 5000)? Yes
Answer: She needs to invest $48571.43 @ 7% to obtain a total of $5000/year.
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