Problema Solution
Ed moura has 18000 invested in stock paying 8%. How much additional money should he invest in certificates of deposit paying 2% so that the average return on the investments is 3%?
Answer provided by our tutors
Let 'x' represent the additional money invested in certificate id deposit paying 2%.
0.08*18000 + 0.02*x = 0.03(18000 + x)
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click here to see the equation solved for x
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x = $90,000
Additional $90,000 should be invested in certificates of deposit.