Question

If Ben invests $4000 at 4% interest per year, how much additional money must he invest at 5 1/2% annual interest to ensure that the interest he receives each year is 4 1/2% of the total amount invested?

Answer 1

Let "x" be the amount of additional money he needs to invest.
EQUATION:
interest + interest = interest.

0.04(4000) + 0.055x = 0.045(4000+x)
160 +0.055x = 180+0.045x
0.010x=20
x= $2000 (amount of additional money he needs to invest at 5 1/2 %)
Cheers.

Answer 2

thank u!!

Answer 3

You're Welcome! :)