Question

helen invested 10,000 in an account that pays 1.5 interest how much additional money must be invested in an account 3 interest so that the average return of the two investments amounts to be 2

Answer 1

To find the additional money needed to be invested in an account with a 3% interest rate to achieve an average return of 2%, use the weighted average formula.

Step-by-step explanation:

To find the additional money that must be invested in an account with a 3% interest rate, we need to use the weighted average formula. Let's assume the amount of money to be invested in the account with a 1.5% interest rate is x. The total amount of money invested is $10,000 + x, and the average return should be 2%.

Using the formula for weighted average: 1.5%(10,000) + 3%(x) = 2%(10,000 + x)

Now we can solve for x by first multiplying both sides of the equation by 100 to remove the percentages. After that, we can simplify the equation and solve for x. We can then determine the additional money that needs to be invested in the account with a 3% interest rate.