Question

Jake has $4,000 invested at 8% annual interest. He has $2,800 more to invest. At what rate
must he invest the $2,800 to have a total annual interest of $628?

Answer 1

Step-by-step explanation:

with $4,000 invested, Jake has

8% × $4,000 = $320 annually.

in order to have annual interest $628, he has to get more interest $(628-320) = $308.

the rate should be:

308/2800 × 100%

= 308 /2800 × 100%

= 11%

Answer 2

Answer:

11%

Step-by-step explanation:

Simple Interest Formula

I = Prt

where:

• I = interest earned
• P = principal
• r = interest rate (in decimal form)
• t = time (in years)

Given:

• P = $4,000
• r = 8% = 0.08
• t = 1 year

To calculate the interest Jake will earn on his initial investment of $4,000 substitute the given values into the formula and solve for I:

$\implies \sf I=4000(0.08)(1)=320$

As he wants to have a total annual interest of $628, he must earn the following interest on his second investment:

$\implies \sf 628-320=308$

Given:

• I = $308
• P = $2,800
• t = 1 year

To calculate the interest rate for the $2,800 investment, substitute the given values into the formula and solve for r:

$\implies \sf 308=2800(r)(1)$

$\implies \sf r=\dfrac{308}{2800}$

$\implies \sf r=0.11$

$\implies \sf r=11\%$

Therefore, Jake must invest $2,800 at the rate of 11%.

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