SOLUTION: an author of mystery books received a royalty check for $350,000 and decides to keep $50,000 and invest the remainder. He invests some in certificates of desposit (CDs) that have a
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-> SOLUTION: an author of mystery books received a royalty check for $350,000 and decides to keep $50,000 and invest the remainder. He invests some in certificates of desposit (CDs) that have a
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Question 713850: an author of mystery books received a royalty check for $350,000 and decides to keep $50,000 and invest the remainder. He invests some in certificates of desposit (CDs) that have an annual yield at 3% and the remainder in mutual funds which have an anticipated return of 4.5%. If the total returns from the two investments are $11,625 per year, find the amount in each investment?
You can put this solution on YOUR website! CD's 3.00% per annum ------------- Amount invested =x
MF 4.50% per annum ------------ Amount invested = y =
300000
Interest----- 11625
CD's 3.00% per annum ---x
MF 4.50% per annum ---y
Total investment
x + 1 y= 300000 -------------1
Interest on both investments
3.00% x + 4.50% y= 11625
Multiply by 100
3 x + 4.5 y= 1162500.00 --------2
Multiply (1) by -3
we get
-3 x -3 y= -900000.00
Add this to (2)
0 x 1.5 y= 262500
divide by 1.5
y = 175000
CD's 3.00% $ 125000
MF 4.50% $ 175000
