Question

Someone plz help been stuck on this question for the last 2 hours



Paul has $30,000 to invest. His intent is to earn 11% interest on his investment. He can invest part of his money at 7% interest and part at 13% interest. How much does Paul need to invest in each option to make a total 11% return on his $30,000?
7% interest =$?

13% interest =$?

Answer 1

Answer:

• 7% interest = $10,000
• 13% interest = $20,000

Step-by-step explanation:

First find out what an 11% return on $30,000 is.

= 11% * 30,000

= $3,300

Use simultaneous equations.

Assume the amount to be invested in to make a 7% interest is x and the amount for a 13% interest is y.

0.07x + 0.13y = 3,300

x + y = 30,000

y = 30,000 - x

0.07x + 0.13 (30,000 - x) = 3,300

0.07x + 3,900 - 0.13x = 3,300

0.07x - 0.13x = 3,300 - 3,900

-0.06x = -600

x = -600 / -0.06

x = $10,000

y = 30,000 - x

= 30,000 - 10,000

y = $20,000