Investments If Ben invests $4000 at 4% interest per year, how much additional money must he invest at 5% annual interest to ensure that the interest he receives each year is 4,% of the total amount invested?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 11E
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Investments If Ben invests $4000 at 4% interest per year,
how much additional money must he invest at 5% annual
interest to ensure that the interest he receives each year is
4,% of the total amount invested?
Transcribed Image Text:Investments If Ben invests $4000 at 4% interest per year, how much additional money must he invest at 5% annual interest to ensure that the interest he receives each year is 4,% of the total amount invested?
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