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Problem 28 reads, a financial planner invested a portion of his clients $190 ,000 in a high -yield mutual fund that earned $11 ,000 annual simple interest.
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The remainder of the money was invested in a mini -mall development.
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Unfortunately, that investment lost 25 % of its value the first year.
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Find the amount originally made in each investment if the first year net income was $6 ,500.
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So i started by making a chart that includes the equation p times r times t is equal to i, and one of the rows will be the information for the mutual funds, and then the other row will be for the mall development.
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So we're going to start by writing that the total amount earned from the investment was $6 ,500.
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And this is after one year.
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So the time for both investments is going to be one.
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And then i'm going to say that x is going to represent the amount that was invested in the mutual fund.
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And the mutual fund had an 11 % interest rate.
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So as a decimal, that's going to be 0 .11.
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Since we don't know what value was invested into the mall or the mutual fund, but we know that a total of $190 ,000 was invested into both, the value that i'm going to put to represent the principal put into the mall is $190 ,000 minus x.
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And because the mall lost its value instead of a positive decimal, we're going to have a negative decimal.
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And it lost 25 % of its value.
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So as a decimal 25 % is 0 .25.
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Then from here to find the interest, we're going to have to multiply the p times r times t.
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So for the mutual fund, the interest is 0 .11x.
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And then for the mall, it's going to be negative 0 .25 times 190 ,000 minus x.
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And then from here, we're going to form an equation based on the information in the i column.
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So we have 0 .11x minus 0 .25 times 190 ,000 minus x is equal to 6 ,500.
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And then before we can even start to solve this equation, we're actually going to multiply both sides of the equation by 100 to turn the decimals into whole numbers.
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So we have 100 times 0 .11x, which gives us 11x...