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.
