Question 631552: you have 50,000 to invest. part of the money is to be invested in cds that are paying 1.5% per year, and the other part of the money will be invested in corporate bonds paying 4% per year. you wish to obtain an overall return rate of 2.5%. how much money should be placed in each investment
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! You have 50,000 to invest. part of the money is to be invested in cds that are paying 1.5% per year, and the other part of the money will be invested in corporate bonds paying 4% per year. you wish to obtain an overall return rate of 2.5%. how much money should be placed in each investment
------------
x + y = 50,000
0.015x + 0.04y = 0.025*50,000
--------------------------------
Modify:
15x + 15y = 15*50,000
15x + 40y = 25*50,000
---------------------------
25y = 10*50,000
y = 10*2,000 = 20,000 (amt. to invest at 4%
x = 30,000 (amt. to invest at 1.5%
==================================
Cheers,
Stan H.
======================
|
|
|
