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Investment

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Intern
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Joined: 26 Feb 2011
Posts: 45
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Investment [#permalink] New post 04 Mar 2011, 10:10
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

75% (01:39) correct 25% (00:00) wrong based on 4 sessions
Barbata invests $2400 in the National Bank at 5%. How much additional money must she invest at 8% so that the total annual income will be equal to 6% of her entire investment?

A/ 1200
B/ 3000
C/ 1000
D/ 3600
E/ 2400
[Reveal] Spoiler: OA
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Joined: 20 Dec 2010
Posts: 2058
Followers: 123

Kudos [?]: 825 [0], given: 376

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Re: Investment [#permalink] New post 04 Mar 2011, 10:19
Let the additional invested amount for 8% interest be x;

Equation will be;
2400+0.05*2400+x+0.08x = 2400+x+0.06(2400+x)
0.05*2400+0.08x = 0.06x+0.06*2400
0.02x = 2400(0.06-0.05)
x = 2400*0.01/0.02 = 1200

Ans: "A"
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Manager
Manager
Joined: 15 Jan 2011
Posts: 64
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Re: Investment [#permalink] New post 04 Mar 2011, 19:07
in short the question is asking wht additional amnt shud be added so tht the individual interest rates match up 6% of the total.

(x+2400)*6=2400*5+8x.
on solving, x=1200.
option A
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Joined: 16 Nov 2010
Posts: 1698
Location: United States (IN)
Concentration: Strategy, Technology
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Re: Investment [#permalink] New post 04 Mar 2011, 20:53
120 + 8/100 * x = 6/100 * (x+2400)

=> (8-6)x/100 = 144 - 120

=> x = 2400/2 = 1200

So answer is A.
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Re: Investment   [#permalink] 04 Mar 2011, 20:53
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