SOLUTION: Mr. Smith invests $21,000 at 8% interest rate. How much more must he invest at 9.5% interest to have an annual income of 9% of his total investment?
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Question 767876: Mr. Smith invests $21,000 at 8% interest rate. How much more must he invest at 9.5% interest to have an annual income of 9% of his total investment? Answer by reviewermath(1029) (Show Source):
You can put this solution on YOUR website! Q:
Mr. Smith invests $21,000 at 8% interest rate. How much more must he invest at 9.5% interest to have an annual income of 9% of his total investment?
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Let x = amount Mr. Smith must invest at 9.5% interest
0.08(21000) + 0.095x = 0.09(x + 21000)
1680 + 0.095x = 0.09x + 1890
0.095x - 0.09x = 1890 - 1680
0.005x = 210
x = 210/0.005
x = 42000
Answer: $
