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You have $1000 to invest in two different accounts. To save the money you need for college, you need to average 5.7 percent interest. If the two accounts pay 4 percent and 6 percent interest, how much should you invest in each account?
$550 in 4%, $450 in 6%
$300 in 4%, $700 in 6%
$700 in 4%, $300 in 6%
$150 in 4%, $850 in 6%

Sagot :

sqdancefan

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Answer:

  $150 in 4%, $850 in 6%

Step-by-step explanation:

The fraction that must earn the highest rate is ...

  (5.7 -4.0)/(6.0 -4.0) = 1.7/2 = 0.85

That is 0.85 × $1000 = $850 must be invested at 6%. Matches the last choice.

_____

If you let x represent the amount that must earn 6%, then the total interest earned must be ...

  x·6% +(1000 -x)·4% = 1000·5.7%

  x(6 -4) = 1000(5.7 -4) . . . . . . multiply by 100, subtract 4·1000

  x = 1000·(5.7 -4)/(6 -4) = 850 . . . . as above

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