Solve.
-David has $18,000 to invest. He invests $13,000 in a mutual fund that pays 12% annual simple interest. If he wants to make at least $2200 in yearly interest, at what minimum rate does the
Remainder of the money need to be invested?
A) 11.8%
B) 14.8%
C) 12.8%
D) 10.8%

Question

Quizplus · Accepted Answer

David invests $13,000 at 12%, earning $1,560 in interest ($13,000 * 0.12). He needs at least $2,200 in total interest, so the remainder ($5,000) must earn at least $640 ($2,200 - $1,560). The rate needed is $640 / $5,000 = 0.128 or 12.8%.

Solve. -David Has $18,000 to Invest. He Invests $13,000 in a a Mutual