Problema Solution

Helen Weller invested $10,000 in an account that pays 10% APR. How much additional money must be invested in an account that pays an APR of 13% so that the total interest is equal to the interest on the two investments at the rate of 11%?

Answer provided by our tutors

10000

10% interest=1000

additional amount =x

13% interest=0.13x

 

but total interest is 11%

so, 1000+0.13x=0.11(10000+x)

1000+0.13x=1100+0.11x

0.02x=100

x=100/0.02

x=5000.