SOLUTION: A financial advisor advises Jennifer to invest her money equally in stocks and bonds. If the return on bonds is 4.5% and the return on the stocks is anticipated to be 7%, how much
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-> SOLUTION: A financial advisor advises Jennifer to invest her money equally in stocks and bonds. If the return on bonds is 4.5% and the return on the stocks is anticipated to be 7%, how much
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Question 1121432: A financial advisor advises Jennifer to invest her money equally in stocks and bonds. If the return on bonds is 4.5% and the return on the stocks is anticipated to be 7%, how much should she invest in each type of investment to make $2530 each year? Answer by ikleyn(52798) (Show Source):
Let x be an amount she invests in each fund.
Then your equation is
interest + interest = total interest, or
0.045x + 0.07x = 2530 dollars
0.115x = 2530
x = = 22000.
Answer. Each investment should be $22000.
