Sanhita M. answered • 07/21/16

Tutor

4.7
(11)
Mathematics and Geology

Given that a student receives a yearly income of $4,900 from a $70,000 account.

From $70,000 in the account, $ 20, 000 is invested @4.5% yearly interest, thus earning [(4.5*20,000)/100]=$900

Thus money remaining in the account, ($70,000-$20,000)=$50,000 this must earn yearly ($4900-$900)= $4000, at least, 4.5% yearly interest

Therefore,he must earn on the rest of this investment of $50,000, $4000 per year.

Hence the rate of return on the rest of $50,000= [(4000/50,000)*100] per cent= 8 per cent.

Therefor he must earn on the rest of this investment @ 8%