Localfund.com - All about Fund and Investment
*Home>>>Investment Plan

My question wouldn't fit.?


Samantha has two investments totaling $13,500. Plan A is at an APR of 5.25% and plan B is at an APR of 6.5%. After one year, the interest earned from plan B is $425 more than the interest from plan A. How much did she invest in each plan?

I know I shouldn't be giving the answers to your homework, but here ya go:

A + B = 13,500
0.0525A = interest earned from investment A
0.065B = interest earned from investment B

0.065B = 0.0525A + 425
A + B = 13,500

Solve for A and B and you get:
A = $3,851.06
B = $9,648.94

(Answers were rounded to the nearest hundredth).

At first, I didn't want to type out all the work, but I feel generous since this is my first post. Here ya go:

A + B = 13,500
A = 13,500 - B

Plug into other equation and solve for B:
0.065B = 0.0525(13,500 - B)+425
0.065B = 708.75 - 0.0525B + 425
0.1175B = 1133.75
B = 9,648.94

Plug back into A = 13,500 - B and you get
A = 13,500 - 9,648.94
A = 3,851.06

To check your answer, solve for interest earned in each account:
Interest-A = 0.0525 x $3,851.06 = $202.18
Interest-B = 0.065 x $9,648.94 = $627.18

Interest-B - Interest-A = $627.18 - $202.18 = $425

I give up!

do your own homework.

Oh, no! Math! How COULD you?!?!? I'm a blonde!!

Beats me.

who cares??

Thats hard

Tags
  Investment Trading   Investment Strategy   Investment Services   Investment Portfolio   Investment Plan   Investment Performance   Investment Options   Investment Opportunity   Investment Manager
Related information
  • Please Guide me - Aviva Little Masters?

    Yes. It is worth. All most all the Insurance companies have such child welfare and education schemes. They are good. But if you delay and when once the interest rate falls after some time the matur...

  • Which stockbroker should I use?

    You are looking for a margin account if you want to be able to short stocks. According to ScottTrade the margin minimums for are: Scotttrade $500 Charles Schwab $1,000 TD Ameritrade $0 E*Tra...

  • What's the best way going about buying a foreclosed home?

    A foreclosure occurs when a buyer defaults on his or her loan payments, often as a result of bankruptcy or other hard times. As the real estate market has heated up, so has the market for Web sit...

  • Should i buy a house?

    Want real advice? Be cautious on the house (the market's going down anyhow) -- although a bank/lender usually wants to see 2-years of solid earnings you technically CAN pull this off, maybe...

  • Is it good to invest in Real Estate in arizona????

    It is good to invest in Real Estate anywhere, provided you do your homework. Don't overpay for a property, and don't go negative cash-flow for too long. As far as what you can rent ...

  • Where can i find "nothing down" real estate deals in london?

    It doesnt matter where the area is, simply buy the property, under market value and claim a 10% for e.g, "Vendor Gifted Deposit" this means for example, the house is on the market for 100...

  • What kind of investments are the best for newlyweds?

    Index funds. Invest for your retirement and let the kids pay their own way through college.

    ...
  • What is the best way to prospect for sales?

    If you have a series 6 or a series 7 than the flier on cars idea is out. Unfortunately that's against NASD rules. With all of the do not call lists these days its going to be tough using t...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster