Question

Sheila needs to earn $2,500 on an investmentof $40,000. If one investment return 8% interest andthe other 3% interest, how much must Sheila investat 8% to earn $2,500?A. $22.000B. $25,000C.$26.000D.$28.000E. none of these

Answer 1

We need to know how much must Sheila invest at 8% to earn $2,500

Let the money invested is x

So,

8% of x = $2,500

so,

`\begin{gathered} 0.08\cdot x=2500 \\ x=(2500)/(0.08)=31,250 \end{gathered}`

So, to earn 2,500 at a ratio of 8%, she should invest $31,250

So, the answer is option E. none of these