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Last year Luis invested x dollars for one year, half at 8 [#permalink]
16 Jul 2004, 22:33
0% (00:00) correct
100% (00:06) wrong based on 1 sessions
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.
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?