An investment of $3000 is made at an annual simple interest rate of 5%. How much additional money must be invested at an annual simple interest rate of 9% so that the total annual interest earned is 7.5% of the total investment?

Kasey Reese

Kasey Reese

Answered question

2022-10-31

An investment of $3000 is made at an annual simple interest rate of 5%. How much additional money must be invested at an annual simple interest rate of 9% so that the total annual interest earned is 7.5% of the total investment?

Answer & Explanation

inmholtau5

inmholtau5

Beginner2022-11-01Added 16 answers

#Initial investment = $3000
Interest = 5%
Yield from Initial investment = 3000 × 5 100 = 150
Additional Investment = x
interest = 9%
Yield from Additional Investment = x × 9 100 = 9 x 100
Total Investment ( Initial investment + Yield from Additional Investment) =3000+x
Rate of return from total investment = 7.5%
Yield from Total investment = ( 3000 + x ) 7.5 100
Yield from Total investment = Yield from Initial investment +Yield from Additional Investment
Algebraically -
( 3000 + x ) 7.5 100 = 150 + 9 x 100
22500 + 7.5 x 100 - 9 x 100 = 150 [Multiply both side by 100]
22500 + 7.5 x - 9 x = 15000
- 1.5 x = 15000 - 22500
x = - 7500 - 1.5 = 5000

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