Paul has $30,000 to invest. His intent is to earn 12% interest on his investment. He can invest part of his money at 9% interest and part at 15% interest. How much does Paul need to invest in each option to make a total 12% return on his $30,000?

Question

Mathematics

Abbie

21 April, 16:54

Paul has $30,000 to invest. His intent is to earn 12% interest on his investment. He can invest part of his money at 9% interest and part at 15% interest. How much does Paul need to invest in each option to make a total 12% return on his $30,000?

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Answers (1)

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Aaron Arellano · Answer 1

sorry, I got a bit trigger happy, but the answer is 15000 in each account.

Step-by-step explanation:

So first you have to times 30000 by. 12 which gives you the amount of interest you need (3600). Then we find the amount of interest you would recieve if you invested thirty thousand in each.

.09 x 30000 = 2700 which is not enough.

.15x 30000 = 4500, being too much.

But, looking at those answers I realized if you divded each in half it would equal 3600, so to double check, all you do is multiply 15000 by. 09 and then again by. 15 and the answers you get are 2250 for. 15 and 1350 for. 09, and then you add both answers together and tada it equals 3600.