Answer:
Option 2 - $1500
Step-by-step explanation:
Given : $4,000 is invested at 3% interest.
To find : How much money must be invested at 5% interest so that the total interest from the two investments is $195 after a year?
Solution : Let x be the amount invested,
Now, we have given that
$4000 invested at 3% in one year the interest is
[tex]I=P\times r\times t[/tex]
[tex]I=4000\times \frac{3}{100}\times 1[/tex]
[tex]I=\$120[/tex]
The total interest from the two investments is $195.
The additional interest with 5% is
$195 - $120 = $75
i.e, The amount or principle value x is,
when interest is $75 rate = 5% and time is 1 year
[tex]75=x\times \frac{5}{100}\times 1[/tex]
[tex]x=\frac{75\times 100}{5}[/tex]
[tex]x=1500[/tex]
Therefore, $1500 would have to be invested at 5% to generate a total of $195 from both  investments.
Hence, Option 2 is correct.
