Word Problems Involving Investments

1. Word Problems Involving Investments

2. Investment type problems are a type of mixture problem. In this type of problem we are mixing money into different accounts. For example…... Ron Burgandy has $15,000 to invest. He plans to diversify his money by investing it in two different accounts. One account gives 11.5% interest and the other 9% interest. If he wants to make $1562.50 in interest in the first year, how much should he place in each account? BACK

3. Ron Burgandy has $15,000 to invest. He plans to diversify his money by investing it in two different accounts. One account gives 11.5% interest and the other 9% interest. If he wants to make $1562.50 in interest in the first year, how much should he place in each account? .115 .115x x .09 .09(15000-x) 15000 - x 15,000 1562.50 The interest of the 2 accounts added together equal the total. BACK

4. Ron invested $8500 in the 11.5% acct. and $6500 in the 9% acct. BACK

5. Chazz Michael Michaels invested $12,500 in two simple interest accounts. One account earns annual simple interest of 7% while the other earns 6%. How much was invested at each rate if each account earned the same interest? Round your answer to the nearest dollar. .07x .06(12500-x) To write the equation, the original problem states that the amount of interest is equal. BACK

7. Word Problems Involving Investments