Question

A university invests $600,000 at simple interest, part at 6%, half that amount at 4.5%, and the rest at 3.5%. What is the most that the university can invest at 3.5% and be guaranteed $24,600 in interest per year?

Answer 1

Answer on Question #43342, Math, Other

A university invests $600,000 at simple interest, part at 6%, half that amount at 4.5%, and the rest at 3.5%. What is the most that the university can invest at 3.5% and be guaranteed $24,600 in interest per year?

Solution:

So let $x =$ amount invested at 4.5% ;

$2x =$ amount invested at 6% ;

600000-3x=amount invested at 3.5% ;

$4.5\% * x + 6\% * 2x + 3.5\% * (600000 - 3x) = 24,600$

$0.045x + 0.12x + 21000 - 0.105x = 24600$

$0.06x = 3600$

$x = 60000$

$600000 - 3x = 420000$

most that the university can invest at 3.5% = $420,000

Answer: $420,000

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