investment

Question

68000 invested in stocks paying 8%. How much additional money should he invest in certificates of deposit paying 3% so that the average returnon the two investments is 4%?

Answer 1

0.08(6800) + 0.03x = 0.04(6800 + x)

544 + 0.03x = 272 + 0.04x

272 = 0.01x

27200 = x

 

$27,200 additional must be invested.