Paul has $70,000 to invest. His intent is to earn 15% interest on his investment. He can invest part of his money at 8% interest and part at 18% interest. How much does Paul need to invest in each option to make a total 15% return on his $70,000?

Question

13 May, 04:11

+1

Answers (1)

Know the Answer?

Dee · Answer 1

Let n be the part invested at 18%. Then:

.18n+.06 (40000-n) =.15 (40000)

.18n+2400-.06n=6000

.12n=3600

n=3600/.12=$30000 at 18%, $10000 at 6%!