Investments

Question

If ben invests $5000 at 4% interests per year, how much additional money must he invest at 5 1/2% annual interest to ensure that the interest he receives each year is 4 1/2% of the total amount invested?

Answer 1

5000(.04) + x(.055) = (5000+x)(.045) solve for x

.4(50) - 4.5(50) = .045x -.055x

200 -225 = .01x

.01x = 25

x = $2,500 invested at 5.5% so total interest rate for both investments = 4.5%