If Arnold invests $\$ 6500$ at $4 \%$ per year, how much additional money must he invest at $10 \%$ to ensure that the interest he receives each year is $8 \%$ of the total invested?
A)
$\$ 13,000$
B)
$\$ 12,375$
C)
$\$ 18,000$
D)
$\$ 21,000$
E)
$\$ 22,500$

Question

If Arnold invests $\$ 6500$ at $4 \%$ per year, how much additional money must he invest at $10 \%$ to ensure that the interest he receives each year is $8 \%$ of the total invested? 
A)
 $\$ 13,000$ 
B)
 $\$ 12,375$ 
C)
 $\$ 18,000$ 
D)
 $\$ 21,000$ 
E)
 $\$ 22,500$

Quizplus · Accepted Answer

To achieve an overall interest rate of 8%, Arnold needs to solve for the additional investment $x$ at 10%: $0.04 \times 6500 + 0.10 \times x = 0.08 \times (6500 + x)$. Solving this equation gives $x = 13000$.

If Arnold Invests $6500\$ 6500$6500 At 4%4 \%4% Per Year, How Much Additional Money Must He Invest At How

If Arnold Invests $\$ 6500$ At $4 \%$ Per Year, How Much Additional Money Must He Invest At How