Problema Solution
An investor wishes to realize a return of 12% on a total of two 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%
the 10% interest on $10,000 + the 16% interest on x = 12% interest on the total amount of money 10,000 + x
0.10*10000 + 0.16*x = 0.12(10000 + x)
by solving we find:
x = $5,000
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$5,000 additional money should be invested at 16%.