Precalculus Enhanced with Graphing Utilities
Precalculus Enhanced with Graphing Utilities
6th Edition
ISBN: 9780321795465
Author: Michael Sullivan, Michael III Sullivan
Publisher: PEARSON
Question
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Chapter A.8, Problem 20AYU
To determine

To find: How much can she lend at the 16% rate and still meet her requirement?

Expert Solution & Answer
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Answer to Problem 20AYU

$333,333.33 at 16% rate.

Explanation of Solution

Given:

Wendy, a loan officer at a bank, has $1,000,000 to lend and is required to obtain an average return of 18% per year. If she can lend at the rate of 19% or at the rate of 16% .

Calculation:

Let x represent how much can she lend at the 16% rate and M represent the $1,000,000 .

0.16x + 0.19( M  x ) = 0.18M

0.03x = 0.01M

x =  0.01M 0.03  = $333,333.33 at 16% rate.

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