Elementary Algebra

Published by Cengage Learning
ISBN 10: 1285194055
ISBN 13: 978-1-28519-405-9

Chapter 3 - Equations and Problem Solving - 3.5 - Problem Solving - Problem Set 3.5 - Page 132: 40

Answer

4000 dollars must be invested at 6%.

Work Step by Step

Let X represent the amount of money invested at 6%. We receive 6% $\times$ X = 0.06X from this investment. From the 2000 dollars invested at 3% we receive: 3% $\times$ 2000 = 60 dollars The average return is 5%. Both investments equal 2000 + X, so we can set up the following equation: 0.06X + 60 = .05 $\times$ (2000 + X) 0.06X + 60 = 100 + 0.05X 0.01X = 40 Divide both sides by 0.01: X = 4000 4000 dollars must be invested at 6%.
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