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Last year Luis invested x dollars for one year, half at 8

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Senior Manager
Senior Manager
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Last year Luis invested x dollars for one year, half at 8 [#permalink] New post 16 Jul 2004, 22:33
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0% (00:00) correct 100% (00:06) wrong based on 1 sessions
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Last year Luis invested x dollars for one year, half at 8 percent simple annual interest and the other half at 12 percent simple annual interest. Now he wants to reinvest the x dollars for one year in the same two types of investments, but the lower rate has decreased. If the higher rate is unchanged, what fraction of the x dollars must he reinvest at the 12 percent rate so that the total interest earned from the x dollars will be the
same for both years ?

(1) The lower rate is now 6 percent.
(2) The total amount of interest earned from the two investments last year was $3,000.

Please provide your answer with explanation
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 [#permalink] New post 16 Jul 2004, 22:39
I would say the answer is A.

Assume x = 100 then u can caluclate the the interst for 8% and also 12 %

But u know that the second year 8% has come down to 6%.

I think so much inforamtion shoudl be sufficient to calcuate the final answer
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 [#permalink] New post 17 Jul 2004, 00:42
Bingo!!
You are right. I think what complicated matters for me was that I got into the trap of calculating x and wasted many minutes banging my head for this. Generally I assume X to be 100 in such question, but in this question it somehow did not strike me. Do you think we can solve this question in any other way?
thanks.
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 [#permalink] New post 17 Jul 2004, 11:30
Hmmm.

I cannot think from a differnt angle, but i am sure there shoudl be another method to do this.

Does any one has any other method
  [#permalink] 17 Jul 2004, 11:30
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Last year Luis invested x dollars for one year, half at 8

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