Problema Solution

Ed Moura has $82000 invested in stocks paying 6%. How much additional money should he invest in certificates of deposit paying 3% so that the average return on the two investments is 4%?

Answer provided by our tutors

let x= the amount of the additional investment


0.06*82000 + 0.03*x = 0.04(82000 + x)


by solving we find


x = $164,000.00


click here to see the step by step solution of the equation


Click to see all the steps