Problema Solution

Ed Moura has $83,000 invested in stocks paying 6%. How much additional money should he invest in certificates of deposit paying 2% so that the average return on the two investments is 3%.

Answer provided by our tutors

18000*.05 + x*.02 = .03(18000+x)

Expand: 900+.02x=540+.03x

Combine like terms: 360 = .01x

Divide by .01: x = $36,000