Problema Solution
Kyle plans to invest $7000, part at 5% simple interest and the rest at 6% simple interest. What is the most he can invest at 5% simple interest and still be guaranteed at least $370 in interest per year?
Answer provided by our tutors
let 'x' represent the amount invested at 6%
interest = principal * rate * time
we take time to be equal to 1
we want interest to be no less than $370 per year:
370 <= 0.05(7000) + 0.06x
x > 333.33
Kyle needs to invest at least $333.33 at 6%