Problem (4): Jonathan invested the 80% of his money in a bank which offers an in

Question

Problem (4): Jonathan invested the 80% of his money in a bank which offers an interest rate of % per year and the rest of his money to a financial institute which offers an interest rate of 7% the equation that describes the interest of Jonathan's investment in the (ii) What should be the least amount of Jonathan's invested money in the bank, if he must (ii) What will be the total amount of Jonathan's money in a year, if he invested totally per year financial institute in one year? realize an interest more than $200 in a year form the bank? $15,000 in both the bank and the institute?

Explanation / Answer

Let 100X be the total money with Jonathan.

Investment in Bank= 80X @ 4% Per Annum

Investment in Financial Institute= 20X @ 7% Per Annum

1) Interest in 1 year is given by 80X*0.04+20X*0.07= 4.6X

2) Interest from Bank=200, which means 80X*0.04=200 => 3.2X=200 => X=62.5

Minimum Investment in Bank=5000$

3) Total investment= 100X=15000$

Investment in Bank=80X=0.8*15000=12000$

Interest on investment in Bank=12000*0.04=480$

Investment in Financial Institute=20X=0.2*15000=3000$

Interest on investment in Financial Institute=3000*0.07=210$

Total Amount after 1 Year= 15000+480+210=15690$

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