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Alex
3 years ago
15

Ed Moura has $32000 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%
Mathematics
1 answer:
inna [77]3 years ago
4 0

Answer:

Ed Moura invest $64000 in certificates of deposit paying 3%

Step-by-step explanation:

Ed Moura has $32000 invested in stocks paying 6%.  

Additional money in certificates of deposit paying 3% =x  

so that the average return on the two investments is 4%.  

32000*6% +3%*x = 4%(32000+x)

32000*0.06 +0.03*x = 0.04(32000+ x)

1920 + 0.03x = 1280 +0 .04x

1920 - 1280 = 0.04x - 0.03x

0.01x = 640

x = 64000

x = $64000

x= $64000 in certificates of deposit paying 3%

Thank you.

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