Solution:

Income from $ 4000 at 5 % in one year = $ 4000 of 5 %.

• = $ 4000 × 5/100.
• = $ 4000 × 0.05.
• = $ 200.

Income from $ 3500 at 4 % in one year = $ 3500 of 4 %.

• = $ 3500 × 4/100.
• = $ 3500 × 0.04.
• = $ 140.

Total income from 4000 at 5 % and 3500 at 4 % = $ 200 + $ 140 = $ 340.

Remaining income amount in order to have a yearly income of $ 500 = $ 500 - $ 340.

• = $ 160.

Total invested amount = $ 4000 + $ 3500 = $7500.

Remaining invest amount = $ 10000 - $ 7500 = $ 2500.

We know that, Interest = Principal × Rate × Time

• Interest = $ 160,
• Principal = $ 2500,
• Rate = r [we need to find the value of r],
• Time = 1 year.
• 160 = 2500 × r × 1.
• 160 = 2500r
• 160/2500 = 2500r/2500 [divide both sides by 2500]
• 0.064 = r
• r = 0.064

Change it to a percent by moving the decimal to the right two places r = 6.4 %

• Therefore, he invested the remaining amount $ 2500 at
• 6.4% in order to get $ 500 income every year.

Answer:

A man has $ 10,000 to invest. He invests $ 4000 at 5 % and $ 3500 at 4 %. In order to have a yearly income of $ 500, he must invest the remainder at:

a. 6 %

b. 6.1 %

c. 6.2 %

d. 6.3 %

e. 6.4 %

Step-by-step explanation:

CARRYONLEARNING