Simple Homework Problem need help ASAP?
Question:
A plumber has a choice of two investment plans:
1) An insured fund that pays 11% interest
2) A risky investment that pays a 13% return
If the same amount invested at the higher rate would generate an extra $150 per year, how much does the plumber have to invest?
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Please help me I cant figure it out and its my last problem due in 1 hour
Answer:
1.13(x) = 150 + 1.11(x)
1.13(x) - 1.11(x) = 150
0.02(x) = 150
x = 150 / 0.02
x = 7500
$150.00 would be the difference of 2% of the investment
x = $7,500, i.e. 1.11x+150=1.13x
13-11 = 2
2% = 150
1% = 75
100% = 7500
The plumber would have to invest $7500
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