Question

You have already invested $550 in a stock with an annual return of 11%. How much of an additional $1100 should be invested at 12% and how much at 6% so that the total annual return on the entire $1650 is 9%

Answer 1

The return on the $550 invested at 11% is .11(550) How much do you get from that stock?

Answer 2

$60.5

Answer 3

What is the total return on the 1650 at 9%?

Answer 4

$148.50

Answer 5

oh why is it 1100-x ?

Answer 6

:/

Answer 7

Now...where were we.

Answer 8

okay yes lets take it step by step please

Answer 9

So he makes $60.50 on the $550.
He wants his total return to be 9% of 1650 which is $148.50

Answer 10

yes

Answer 11

So he needs an additional $148.50-$60.50 or $88

Answer 12

yes

Answer 13

So now we have a new problem: He has $1100 to invest. Part will be invested at 12% and part at 6% and the return on the investment will be $88

Answer 14

yes.

Answer 15

Let x = amount invested at 12%
The return on that amount will be .12x

Answer 16

okay.

Answer 17

He has 1100-x dollars left to invest at 6%
The return on that will be .06(1100-x)

Answer 18

Together those two returns will be $88
So:
.12x+.06(1100-x)=88

Answer 19

okay but why is it 1100-x ?

Answer 20

If you have 1100 dollars and you put 500 in the bank, how much do you have left?

Answer 21

600

Answer 22

If you have 1100 dollars and you put x dollars in the bank, how much do you have left?

Answer 23

1100-x

Answer 24

If you have $1100 and you invest x dollars at 12%, how much do you have left to invest at 6% ?

Answer 25

Oh kay i see now.

Answer 26

ty

Answer 27

Good for you. yw

Answer 28

could you help me with 1 more please lol.

Answer 29

If it is not too hard.

Answer 30

Did you get that other one?

Answer 31

i think this one is easier because last one seemed impossible

Answer 32

yes i did you explained it really well to me!

Answer 33

If you borrow 500 dollars from a credit union at 12% annual interest and 250 dollars from a bank at 18% annual interest, what is the effective annual interest rate

Answer 34

Find the interest on the 500 dollars. Then find the interest on the 250 dollars. Add them together to get the total interest.

Answer 35

105 is the total interest

Answer 36

so that is effective interest ?

Answer 37

And the total amount borrowed is 750 so, using the formula:
Interest = principal(rate)(time)
you can find the overall interest rate on the entire 750

Answer 38

what would the time be ?

Answer 39

It says annual so that would be 1 year.

Answer 40

okay so 105 would be the put in for the interest and 750 for principal and so i solve for rate ?

Answer 41

Exactly.

Answer 42

Oh okay thanks!!

Answer 43

yw