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Alisa has a retirement account valued at $200,000. She would like to earn $25,000 per year. If she invested $80,000 at a 9.5% account. What rate should she earn in the remainder to achieve her goal?

2007-07-17 17:15:21 · 2 answers · asked by azngurl0088 1 in Education & Reference Homework Help

2 answers

Find how much she would make on the 80 K (80Kx.095). Subtract it from 25K.

With the 80 K gone she has 120K left.
120K x N=Whatever you got when you subtracted 25K.
I'm not going to fully do your homework, but I think you can get it from there.

2007-07-17 17:26:15 · answer #1 · answered by Truth 7 · 0 0

80,000 x 9.5% + (200,000 – 80,000) x r = 25,000
7600 + 120,000 x r = 25,000

120,000 x r = 17400
r = 14.5 %

She should earn 14.5% in the remainder to achieve her goal.

2007-07-18 00:29:31 · answer #2 · answered by Li 2 · 0 0

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