Question

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Answer 1

Answer:

• $17,500 at 8%
• $17,500 at 14%

Step-by-step explanation:

The fraction that needs to be invested at the higher rate is ...

  (11% - 8%)/(14% -8%) = 3%/6% = 1/2

Half the money should be invested at each of the rates:

  $17,500 for 8% return

  $17,500 for 14% return.

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If you let x represent the amount at the higher rate, then the total return is ...

  14%x + 8%(35000 -x) = 11%(35000)

  (14% -8%)x = (11% -8%)(35000) . . . . subtract 8%·35000

  x = (11% -8%)/(14% -8%)×35000 . . . . divide by the coefficient of x

Note that this formula is exactly the one we started with, above.