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A $200 investment at x percent per annum and a $500 investment at y percent per annum have a combined yearly return of 10 percent of the total of the two investments. If $400 is invested at x percent and $600 is invested at y percent per annum to give a combined yearly return of 9.2 percent of the total of the two investments, what will be the combined percentage yearly return of the total investment if $100 each is invested at x percent per annum and y percent per annum respectively?
  • a)
    5%
  • b)
    7.5%
  • c)
    8.5%
  • d)
    10%
  • e)
    17%
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
A $200 investment at x percent per annum and a $500 investment at y pe...
Given:
  • Case-I
    • Principal , P = $200
      • Rate of interest = x% p.a.
    • Principal, P = $500
      • Rate of Interest = y% p.a.
    • Combined yearly return = 10%
  • Case-II
    • Principal, P = $400
      • Rate of interest = x% p.a.
    • Principal, P = $600
      • Rate of Interest = y% p.a.
    • Combined yearly return = 9.2%
To Find: Combined yearly return if $100 each is invested at x% p.a. and y% p.a.?
  • Let the combined yearly return be R%
  • So, Return on $200 invested at R% p.a. = Return on $100 at x% p.a. + Return on $100 at y% p.a.
Approach:
  1. For finding the value of R, we need to find the value of x and y.
  2. We are given two cases in which the principals are invested at x% and y% per annum and we are also given the combined yearly return for both the cases
    • The combined yearly return is equal to the sum of the returns of the individual investments
    • Writing the combined yearly return equations for each of the case will give us an equation in x and y
  3. We will solve both the equations to get the value of x and y, which will be used to calculate the yearly return on $100 each invested at x% and y% p.a.
Working out:
  1. Case-I
  • As the combined yearly return is equal to the sum of the returns of individual investments, we can write the following equation
  • 2x +5y = 70……………..(1)
2. Case-II
  • As the combined yearly return is equal to the sum of the returns of individual investments, we can write the following equation
3. Solving (1) and (2), we have y = 12 and x = 5
4. Hence, combined yearly return on investment of $100 each at x% and y% can be calculated as
Answer : C
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Most Upvoted Answer
A $200 investment at x percent per annum and a $500 investment at y pe...
Given:
  • Case-I
    • Principal , P = $200
      • Rate of interest = x% p.a.
    • Principal, P = $500
      • Rate of Interest = y% p.a.
    • Combined yearly return = 10%
  • Case-II
    • Principal, P = $400
      • Rate of interest = x% p.a.
    • Principal, P = $600
      • Rate of Interest = y% p.a.
    • Combined yearly return = 9.2%
To Find: Combined yearly return if $100 each is invested at x% p.a. and y% p.a.?
  • Let the combined yearly return be R%
  • So, Return on $200 invested at R% p.a. = Return on $100 at x% p.a. + Return on $100 at y% p.a.
Approach:
  1. For finding the value of R, we need to find the value of x and y.
  2. We are given two cases in which the principals are invested at x% and y% per annum and we are also given the combined yearly return for both the cases
    • The combined yearly return is equal to the sum of the returns of the individual investments
    • Writing the combined yearly return equations for each of the case will give us an equation in x and y
  3. We will solve both the equations to get the value of x and y, which will be used to calculate the yearly return on $100 each invested at x% and y% p.a.
Working out:
  1. Case-I
  • As the combined yearly return is equal to the sum of the returns of individual investments, we can write the following equation
  • 2x +5y = 70……………..(1)
2. Case-II
  • As the combined yearly return is equal to the sum of the returns of individual investments, we can write the following equation
3. Solving (1) and (2), we have y = 12 and x = 5
4. Hence, combined yearly return on investment of $100 each at x% and y% can be calculated as
Answer : C
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Community Answer
A $200 investment at x percent per annum and a $500 investment at y pe...
Given:
  • Case-I
    • Principal , P = $200
      • Rate of interest = x% p.a.
    • Principal, P = $500
      • Rate of Interest = y% p.a.
    • Combined yearly return = 10%
  • Case-II
    • Principal, P = $400
      • Rate of interest = x% p.a.
    • Principal, P = $600
      • Rate of Interest = y% p.a.
    • Combined yearly return = 9.2%
To Find: Combined yearly return if $100 each is invested at x% p.a. and y% p.a.?
  • Let the combined yearly return be R%
  • So, Return on $200 invested at R% p.a. = Return on $100 at x% p.a. + Return on $100 at y% p.a.
Approach:
  1. For finding the value of R, we need to find the value of x and y.
  2. We are given two cases in which the principals are invested at x% and y% per annum and we are also given the combined yearly return for both the cases
    • The combined yearly return is equal to the sum of the returns of the individual investments
    • Writing the combined yearly return equations for each of the case will give us an equation in x and y
  3. We will solve both the equations to get the value of x and y, which will be used to calculate the yearly return on $100 each invested at x% and y% p.a.
Working out:
  1. Case-I
  • As the combined yearly return is equal to the sum of the returns of individual investments, we can write the following equation
  • 2x +5y = 70……………..(1)
2. Case-II
  • As the combined yearly return is equal to the sum of the returns of individual investments, we can write the following equation
3. Solving (1) and (2), we have y = 12 and x = 5
4. Hence, combined yearly return on investment of $100 each at x% and y% can be calculated as
Answer : C
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Card #1In 2011, the Cornucopia Products Company (CPC) realized $100,000 in profits. Their 2011 customer base of 20,000 is relatively stable. Based on past trends, they can expect to retain that customer base in 2012. If they make no additional changes in marketing or R & D, then it is reasonable to expect their customer base in 2012 will be remain the same. Increasing their profits will depend on generating new customers either through successful advertising campaigns and or attractive fruits of research & development. The total customer base C in 2012 will be the retained customers plus any new customers. If C is their 2012 customer base in thousands, then their profit P (in thousands of dollars) is given byP = 0.01C^2 + 7C – 44Card #2In 2012, CPC can choose to invest some part of its 2011 profits in one or more forms of advertising. In everything on this card, X = money (in thousands of dollars) invested in that form of advertising, and N is the number of new customers (in thousands), on average, that form of advertising is likely to generate in 2012.1) Print MediaInvestment: no more than $10,000, due to sharply diminishing returns above that threshold.If X < 10, N = X/22) TV & Movie advertisingInvestment: minimum of $15,000If X > 15, N = 2X/3 – 103) Web-based advertisingInvestment: no lower or upper limitN = X/4Card #3In CPCs Research and Development (R & D), many new products have been developed in the past, contributing to its financial success. In 2012, CPC has already allocated a small baseline budget to ongoing R & D, without any expectation that those results will bear fruit in this calendar year. Beyond that, CPC has to decide about whether to put more money from its 2011 profits into two ongoing projects.Project A has been in development for a little over a year. It is close to completion. The most reliable data about Project A suggest if CPC makes a $10000 investment in 2011, theres an 80% chance of producing a new product that would add 5,000 new customers in 2012; if CPC makes a $30,000 investment, theres a 20% chance of producing a suite of new products that would add 30,000 new customers.Project B is a relatively new product, involving some cutting edge technology. Its very expensive, and the results are uncertain. The most reliable data about Project B suggest if CPC makes a $40000 investment in 2011, theres a 40% chance that the new products would add 50,000 new customers in 2012.Q.At what level of investment would TV & movie advertising create, on average, the same number of new customers as web based advertising?

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A $200 investment at x percent per annum and a $500 investment at y percent per annum have a combined yearly return of 10 percent of the total of the two investments. If $400 is invested at x percent and $600 is invested at y percent per annum to give a combined yearly return of 9.2 percent of the total of the two investments, what will be the combined percentage yearly return of the total investment if $100 each is invested at x percent per annum and y percent per annum respectively?a)5%b)7.5%c)8.5%d)10%e)17%Correct answer is option 'C'. Can you explain this answer?
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