Question

Kyle plans to invest $8500, part at 6% simple interest and the rest at 7% simple interest. What is the most that he can invest at 6% and still be guaranteed at least $535 in interest per year?

Answer 1

Answer:

Most of the money which can be invested at 6% is $6000

Step-by-step explanation:

Total amount of money = $8500

Let most of the money which is invested at 6% = x

So, most of the money which is invested at 7% = 8500 - x

Now, amount of interest which is guaranteed per year = $535

So, according to the given condition, We have :

6% of x + 7% of (8500 - x) = 535

⇒ 0.06·x + 0.07·(8500 - x) = 535

⇒ 0.06·x + 0.07  × 8500 - 0.07·x = 535

⇒ -0.01·x = -60

⇒ x = 6000

Hence, Most of the money which can be invested at 6% is $6000