Math HW: You are going to invest $25,000, part at 14%, part at 16%?
(continued from above) What is the most that can be invested at 14% to make at least $3600 per year?
Need help understanding the question and what it is asking. The answer in the back says $20,000 is the most that can be invested at 14% to make at least $3600 per year.
This is taken directly from the book, and I’m not into just writing the answer down. Anyone with interest and investment experiences needed. Thank you = D
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This is pretty silly, as why would anyone invest in a certain 14 pct with a chance for a certain 16 pct? — both btw ridiculous numbers.
Given its own terms, though, the book is right — .14×20000 = 2800, and .16×5000 = 800.
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Basically when you invest more in at 14% the less money you will earn because you’re investing less in 16%.
Here’s the Math:
Let x = amount invest at 14%
Let (2500-x) = amount invested at 16%
$3600 <= 0.14*x + 0.16*(2500-x) 3600 <= 4000 - 0.02*x 0.02*x <= 400 x <= 20,000 Solution: x can't be less than $20,000 if you want to make more than $3600 per year.
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