All you wannabe investors and money crunchers, post your answers to this little investment problem in the video. It is very basic math, so don’t shy away from it. To make it a bit more interesting, please mention the time it took for you to solve it. If you are unable to solve it or you think it is very difficult, mention that in your comment. Also, let me know if you think that the problem makes no sense. All those who give correct answers will be mentioned in a forthcoming post. Good luck. 
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Just mention the answer and the time it took you to get that, don’t post in your solution procedure…that may take the fun away for the rest of us
P.S: That’s not my voice in the video !
{ 11 comments… read them below or add one }
I don’t want to spoil the answer, but it’s pretty basic algebra. It took me about ten seconds and most of that was in Excel doing the actual mathematics portion.
It took me about 20 seconds, but only because I double checked my answer and didn’t use a calculator. The answer is $4000 @ 4% and $3200 @ 5%.
It is an easy solution especially with Excel solver - its to the point these days that you do not even need algebra. The longest part of the solution was waiting for Excel to open.
And, Tom is right on with the answer.
Sorry, with a crying baby in the background (I pressed enter too soon). Tom, the answer is what is the income (not the investment) of each (so it is $160 each)
I got the same answer, $4000 @ 4% and $3200 @ 5% with each investment earning $160. It took me 8 minutes to do since it has been a while since I have done any algebra.
I used a pen and paper and it took most of the time to figure out my equation.
Umm, now I’m a little embarrassed it took me so long. Better hit the math books I guess.
4000 @ 4% = $160
3200 @ 5% = $160
I don’t think I figured it out “properly” but it worked. About a minute using a calculator.
Jon Postal
keith and teri: nothing to be embarrassed here….it’s just a reminder to “do your own calculations” sort of thing.
Alright, I got it, same as everyone else, but I haven’t done a bona fide longhand algebra problem for a few years. I don’t trust software though. Took me no time once I got the formula figured out. Probably about 4 minutes in all, 3 framing the formula.
All: congrats on getting the right answer. I have posted a possible way of solving the problem quickly in a new post:
http://golbguru.blogspot.com/2006/11/solution-to-investment-problem-and.html
Thank you for participating.
Wasn’t the idea that one should not use a calculator/excel or any other gadget.
Keith and Teri is/are the only only one(s) to use a pen and paper. Everyone else mentioned calculator or excel… ?
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