Problem A fruit stand has to decide what to charge for their produce. They need \$10$10dollar sign, 10 for 444 apples and 444 or
2 answers:
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Answer:
A sum of $12,000 should be allocated at an interest rate of 5.25%, while $13,000 should be put in at 4%.
Step-by-step explanation:
Recall that
The simple interest formula is given by
where
I represents the total interest earned,
P is the initial investment,
r stands for the interest rate, and
t is the number of time periods.
Define
x as the amount invested at 5.25%,
and (25,000 - x) as the amount put in at 4%.
From the problem,
Plugging these into the formula:
Now, isolate x:
Hence, investing $12,000 at 5.25% and $13,000 at 4% meets the required interest condition.