Problema Solution

An investor wishes to realize a return of 12 % on a total of 2 investments. If he has $10, 000 invested at 10% , how much additional money should be invested at 16%?

Answer provided by our tutors

let


x = the money invested at 16%


0.10*10,000 + 0.16*x = 0.12(10,000 + x)


by solving we find


x = $5,000


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he should invest $5,000 at 16%.