Question 57088
Helen Weller invested $15,000 in an account that pays 11% simple interest. How much additional money must be invested in an account that pays 14% simple interest so that the average return on the two investments amounts to 12%?
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Interest #1: 15,000(0.11)= 1650
Interest #2: x(0.14)= 0.14x
EQUATIOH:
I think that word "average" can be misinterpreted on this problem.
Using it in the normal sense gives a negative value of "x".
Ignoring it you can get something meaningful, as follows:
(int#1+int#2) = 0.12(15000+x)
1650+0.14x = 1800+0.12x
0.02x=150
x=15000/2=$7500
That's the amount invested at 14% required so the total investment
will EQUAL 12% of all the money invested.
Cheers,
Stan h.
Cheers,
Stan H.