Question

A financial planner has a client with $15,000 to invest. If he invests $10,000 in a certificate of deposit paying 12% annual simple interest, at what rate does the remainder of the money need to be invested so that the two
investments together yield at least $1550 in yearly

Answer 1

In order for the two investments to yield at least $1550, the remainder of the money has to earn an interest of 7%.

Equation that can be derived from the question

The formula that can be used to determine simple interest is: principal x time x interest rate.

0.12(10,000) + x($5000) = $1550

$1,200 + 5000x = $1550

Where:

x = interest rate paid in the account where $5000 was deposited.

Determination of the interest rate

In the above equation, combine similar terms:

$5000x = $1550 - $1200

Add similar terms together

$5000x = $350

Divide both sides of the equation by 500

x = $350 / 5000

x = 0.07

x = 7%

To learn more about simple interest, please check: brainly.com/question/9352088