Explanation Given information: Given, Mr. Kaplan invests one sum of money at a certain rate of interest and half that sum at twice the first rate of interest. This arrangement turns out to yield 8% on the total investment. Calculation: Let the first amount invested at a rate of interest r be x. So the second amount invested is at a rate of interest 2r is x 2 So the interest earned in one year on the first amount is given by: I 1 = ( x ) ( 1 ) ( r ) = x r And the interest earned in one year on the second amount is given by: I 2 = ( x 2 ) ( 1 ) ( 2 r ) = x r Hence, the total interest earned is x r + x r = 2 x r And, the total amount invested is x + x 2 = 2 x 2 + x 2 = 2 x + x 2 = 3 x 2 Given the interest earned is 8% of the total amount

Precalculus: A Unit Circle Approach (3rd Edition)

3rd Edition

ISBN: 9780134433042

Author: J. S. Ratti, Marcus S. McWaters, Leslaw Skrzypek

Publisher: PEARSON

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Chapter A.6, Problem 62E

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Chapter A.6, Problem 61E

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Precalculus: A Unit Circle Approach (3rd Edition)

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Interest Ron Hampton needs to choose between two investments: One pays 6% compounded annually, and the other pays 5.9% compounded monthly. If he plans to invest 18,000 for 2 years, which investment should he choose? How much extra interest will he earn by making the better choice?
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To find the rates of interest.

Solution Summary: The author explains how Mr. Kaplan invests one sum of money at a certain rate of interest and half that sum at twice the first rate.

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To find the rates of interest.

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Chapter A.6 Solutions