Problema Solution
Helen invested 14,000 in an account that pays 3% simple interest. How much additional money must be invested in an account that pays 6% simple interest so that the average return on the two investments amounts to 4%?
Answer provided by our tutors
let
x = additional money invested in account that pays 6% simple interest
0.03*14000 + 0.06*x = 0.04(14000 + x)
by solving we find
x = $7,000
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$7,000 additional money should be invested.