What is the minimum value?
1 answer:
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Let x represent amount invested in the higher-yielding account.
We have been given that a man puts twice as much in the lower-yielding account because it is less risky. So amount invested in the lower-yielding account would be .
We are also told that his annual interest is $6600 dollars. We know that annual interest for one year will be principal amount times interest rate.
, where,
I = Amount of interest,
P = Principal amount,
r = Annual interest rate in decimal form,
t = Time in years.
We are told that interest rates are 6% and 10%.
Amount of interest earned from lower-yielding account: .
Amount of interest earned from higher-yielding account: .
Let us solve for x.
Therefore, the man invested $30,000 at 10%.
Amount invested in the lower-yielding account would be .
Therefore, the man invested $60,000 at 6%.
Answer:
Semiannual payment = $ 1391.37
Total payment = $ 8348.22
Interest paid = $ 848.22
Step-by-step explanation:
Since, the semiannual payment formula of a loan,
Where,
PV = present value of the loan,
n = number of semiannual payments,
r = annual rate,
Here, PV = 7500, r = 6.3% =0.063, n = 6,
By substituting the value,
The semiannual payment would be,
Also, total payment = semiannual payment × total semiannual periods
= 1391.37 × 6
= $ 8348.22,
Also, the interest paid = total payment - present value
= 8348.22 - 7500
= $ 848.22