Problema Solution
ed moura has "$ 78000" 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
let 'x' represent the additional money that Ed should invest in certificates of deposit paying 2 %
0.06*78000 + 0.02*x = 0.03(78000 + x)
by solving we find:
x = $234,000
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Ed Moura should invest $234,000 additional money in certificates of deposit paying 2 %.