Problema Solution
how would you invest $1000 in two types of securities, one earning 6% and the other 8%, so that you will receive twice as much from the 8% investment as you will from the 6% investment?
Answer provided by our tutors
let 'x' represent the amount invested at 6%, then '1000-x' represents the amount invested at 8%
interest = principal * rate * time
we assume time is equal to 1
6% interest:
0.06x
8% interest:
0.08(1000-x)
we want to receive twice as much interest from the 8% than from the 6% investment:
2(0.06x) = 0.08(1000-x)
solving for 'x' we have x=400
1000-400 = 600
$400 should be invested at 6%, $600 should be invested at 8%