Problema Solution
Ed Moura has $93000 invested in stocks paying 8%. How much additional money should he invest in certificates of deposit paying 4% so that the average return on the two investments is 5%?
Answer provided by our tutors
let
x = the additionally money invested in certificates of deposit paying 4%
93000*0.08 + x*0.04 = 0.05(93000 + x)
by solving we find
x = $279,000
click here to see the step by step solution of the equation
he should invest $279,000 additional money.