SOLUTION: rebecca herst received a year end bonus of $17000 from her company and invested the money in an account paying 6.5%. how much additional money should she deposit in an account payi
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Question 761882: rebecca herst received a year end bonus of $17000 from her company and invested the money in an account paying 6.5%. how much additional money should she deposit in an account paying 5% so that the return on the two investments will be 6%? Answer by ramkikk66(644) (Show Source):
You can put this solution on YOUR website! Step 1: $17000 invested at 6.5% would earn an interest of
Let us say she invests additions x dollars at 5% interest rate.
Step 2: Total amount invested =
Step 3: Interest earned by x dollars =
Step 4: Total interest = ---> from steps 1 and 3
The above total interest is to be 6% of total investment.
So ---> from steps 2 and 4
Solve for x
i.e. or
She needs to invest dollars at 5% interest.
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