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28 April, 03:16

Paul has $ 25000 to invest. His intent is to earn 11 % interest on his investment. He can invest part of his money at 6 % interest and part at 15 % interest. How much does Paul need to invest in each option to make get a total 11 % return on his $ 30000?

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  1. 28 April, 03:28
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    Answer: x=11 111.11 USD - investments at 6% interest

    25000-11 111.11 = 13 888.89 USD investments at 15 % interest

    Step-by-step explanation:

    Paul wants to have 11% from 25000 USD that is 0.11*25000=2750 USD

    Let Paul invests x USD at 6% interest (which makes him 0.06*x USD yearly) and the residual amount, i. e.

    25000-x at 15% interest. (Which makes 0.15 * (25000-x) = 3750-0.15*x).

    So the total return per year:

    0.06*x+3750-0.15*x=2750

    3750-0.09*x-2750=0

    1000-0.09*x=0

    x=1000/0.09

    x=11 111.11 USD - investments at 6% interest

    25000-11 111.11 = 13 888.89 USD investments at 15 % interest
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