Question

An investment of $5,000 is made at a simple annual interest rate of 3%. How much additional money must be invested at a simple annual interest rate of 3.9% so that the total annual interest earned is 3.5% of the total investment?

Answer 1

Answer: Additional money is $6250.

Explanation:

Since we have given that

Amount of investment = $5000

Rate of simple interest = 3%

Let the additional amount of investment be 'x'.

Rate of simple interest = 3.9%

Total annual interest rate on total investment = 3.5%

So, According to question, it would be

`5000* 0.03+x* 0.039=(5000+x)* 0.035\\\\150+0.039x=175+0.035x\\\\0.039x-0.035x=175-150\\\\0.004x=25\\\\x=(25)/(0.004)\\\\x=\$6250`

Hence, Additional money is $6250.