22
practice examMultiple Choice

Practice Exam

Question 22 • Advanced Financial Algebra

An investor has $⁢52,000 in an investment account and is making a deposit. He would like the ratio of the deposit, x , to the total account value after the deposit to be (3)/(16) How much should he deposit to meet his goal? Round to the nearest whole number if necessary.

Answer
A
60 dollars comma 211
B
64 dollars comma 000
C
12 dollars comma 000
D
8 dollars comma 211

Explanation

Let x be the deposit. The account value after depositing is $52,000 + x, so the goal is x/(52,000 + x) = 3/16. Cross-multiplying gives 16x = 156,000 + 3x, so 13x = 156,000 and x = $12,000. The correct choice is C, $12,000.

AI-written and checked against the verified answer.

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