Solve the problem.
-Helen Weller invested $ 14,000 in an account that pays 3% simple interest. How much additional money must be invested in an account that pays 6% simple interest so that the average return on the two investments amounts to 4%?
A) $ 7000
B) $ 11,000
C) $ 10,000
D) $ 14,000

Question

Quizplus · Accepted Answer

The average return on the two investments is 4%. So, the total interest earned from both investments should be 4% of the total amount invested. The interest earned from the first investment is $14,000 * 3% = $420. Let the amount invested in the second account be x. Then, the interest earned from the second investment is x * 6% = 0.06x. The total interest earned from both investments is $420 + 0.06x. This should be equal to 4% of the total amount invested, which is $14,000 + x. So, we have the equation:$420 + 0.06x = 0.04($14,000 + x)Solving for x, we get:x = $10,000

Solve the Problem. -Helen Weller Invested $ 14,000 in an Account That Pays