Respuesta :
Solution: Let x be the amount to be invested (15%).
Then,
x*0.15 + 550*0.11 = (x+550)*0.12
x*0.15 - x*0.12 = 550*0.12 - 550*0.11
0.03x = 550*(0.12-0.11)
0.03x = 550*0.01
0.03x = 5.5
x =5.5÷0.03
x=183.33
Answer: $183.33 more to be invested for 12 % total return.
Answer:
You need to invest $183.3 in a stock with an annual return of 15% so that the return on the total investment is 12%.
Step-by-step explanation:
Consider the provided information.
You have already invested $550 in a stock with an annual return of 11%. The interest earn will be: [tex]550\times \frac{11}{100}[/tex]
Let x amount invested at 15%, the interest earn will be: [tex]x\times \frac{15}{100}[/tex]
It is given that we want that the return on the total investment is 12%
This can be written as
[tex]550\times \frac{11}{100} +x\times \frac{15}{100}=\frac{12}{100}(x+550)[/tex]
Now solve the above equation for x.
[tex]550\times 0.11+x\times 0.15=0.12(x+550)[/tex]
[tex]60.5+0.15x=0.12x+66[/tex]
[tex]0.15x-0.12x=66-60.5[/tex]
[tex]0.03x=5.5[/tex]
[tex]x=183.333..[/tex]
Hence, you need to invest $183.3 in a stock with an annual return of 15% so that the return on the total investment is 12%.
