Question 744109: A professor wants to supplement her pension with investment interest. If she invests $31,000 at 6% interest, how much more would she have to invest at 7% to achieve a goal of $2,700 per year in supplemental income?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A professor wants to supplement her pension with investment interest. If she invests $31,000 at 6% interest, how much more would she have to invest at 7% to achieve a goal of $2,700 per year in supplemental income?
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I(t) = Prt
Initial interest: 0.06*31000 = 1860
Needed interest: 2700-1860 = 840
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Additional investment:
0.07x = 840
x = 840/0.07
x = $12,000
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Cheers,
Stan H.
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