This is my first topic so please be kind. The question below is an IR question that I am having trouble setting up. Any input from members would be greatly appreciated.
You're looking at a classic mixture problem--you can check out here
for a little more detail on them.
Basically, we are "mixing" 4% and 8% interest, to get r
% interest. Although this problem is discussing interest rates, we shouldn't be distracted, because we don't need any fancy formulas for calculating them. We can use the mixture formula alone--which is, conveniently, given to us by the question stem!r
is given to us as 5%, so we can plug that in to the mixture formula given in the question stem. Do so, then remove fractions:
5(x + y
) = 4x
= 4 x
Combine like terms:x
Now, many TPA problems will not have a single algebraic solution. This is two variables in one equation; it's unsolvable. But we have a limited number of choices to solve for. Plug them in, and we'll find that the only set of answers that works is x
= 96, y
Prepare with Kaplan and save $150 on a course!