ed mours has $73000 invested...

Question

in stocks and paying 8%. How much additional money should he invest in certificates of deposits paying 2% so that the average return on the two investments is 3%?

Answer 1

Interest = Principle*Rate*Time

 

Let x = the amount invested at 2%

Assume Time = 1 year

 

($73,000)*(0.08) + x*(0.02) = ($73,000 + x)*(0.03)

 

$5840 + 0.02x = $2190 + 0.03x

 

$3650 = 0.01x

 

Solve for x