Question

Paul has $20,000 to invest. His intent is to earn 10.5% interest on his investment. He can invest part of his money at 7% interest and part at 12% interest. How much does Paul need to invest in each option to make 10.5% interest on his investment?

Paul should invest $
and $
to earn 10.5% on his investments.

Answer 1

x=7%
y=12%
x+y=20000
0.07x+0.12y=20000*0.19=3800