Answer:
The amount of money invested at 13% is $39,000 while the amount of money invested at 3% is $31,000
Step-by-step explanation:
Extra income required per year $6,000
Total investment = $70,000
Let x = amount of money Invested at 13% ;
Then 70,000 - x = amount of money Invested at 3%
Total interest required = $6,000
Thus;
x × 0.13 + (70,000 - x) × 0.03 = 6,000
⇒ 0.13x + 2100 - 0.03x = 6,000
0.13x - 0.03x + 2100 = 6,000
0.1x = 6,000 - 2100
0.1x = 3,900
x = 3,900/0.1
x = $39,000
Thus, what this means is that the amount of money invested at 13% is $39,000 while the amount of money invested at 3% is $70,000 - $39,000 = $31,000
PS ; IN CASE YOU ARE WONDERING WHERE 1.3 AND 0.3 CAME INTO THE CALCULATION, 13% IS (13/100 = 0.13) WHILE 3% IS (3/100 = 0.03)
