Andrew wants supplement his pension with investment interest if he invests 28,000 at 6% interest how much would he have to invest a t 7% to achieve the goal of 3,000 per year in supplemental income.
To calculate the amount Andrew would need to invest at 7% interest to achieve $3,000 per year in supplemental income, we can use the formula for calculating interest:
Interest = Principle × Rate
Let's start by calculating the interest Andrew would earn from his initial investment of $28,000 at 6% interest:
Interest = $28,000 × 6% = $1,680
Now, we need to find out how much Andrew would need to invest at 7% interest to earn $3,000 in interest per year. Let's call this amount X.
Interest = X × 7% = $3,000
To isolate X, we will divide both sides of the equation by 7%:
X = $3,000 ÷ 7% = $42,857.14
Therefore, Andrew would need to invest approximately $42,857.14 at 7% interest to achieve $3,000 per year in supplemental income.