Problema Solution
Ed Moura has $96000 invested in stocks paying 7%. 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
let 'x' represent the amount of additional money invested at 2%, then '96000+x' represents the total amount of money invested
0.03(96000+x) = 0.07(96000) + 0.02x
solving for 'x' we have x=384000
Ed should invest an additional amount of $384,000