If a person invests $9,500 st 5% annual interest, how much more must be invested at 6% so that the person's annual income exceeds $1,087?

1 Answer
Dec 11, 2016

Answer:

So need to invest more than #$10183 1/3 # at 6% to earn a total in excess of $1087 interest from both accounts

Explanation:

#color(blue)("Determine original return")#
#5/100xx$9500 = $475#

#color(blue)("Determine additional investment at 6%")#

Required minimum return is #$1087#

So minimum amount extra to earn at 6% is

#6/100 x = $1086-$475#

#x=100/6xx$611#

#x=$10183 1/3# to give the exact threshold value

So need to invest more than #$10183 1/3 # at 6% to earn a total in excess of $1087 interest from both accounts