Question

A man has $ 10,000 to invest. He invests $ 4000 at 5 % and $ 3500 at 4 %. In order to have a yearly income of $ 500, he must invest the remainder at:

(a) 6 % , (b) 6.1 %, (c) 6.2 %, (d) 6.3 %, (e) 6.4 %

Answer 1

Hello again!

when he invested $4000 at 5% he increased his income from 0 to 200

adding 4% of 3500 increased it by 140

totaling to $340

he has $2500 left. and he needs $160 more income

160 is 6.4% of 2500

so he needs to invest the remaining $2500 at 6.4% to get the last $160

of his income

I hope this helps, and have a nice day!