Posted by bethany on .
Carson wants to invest $100,000 in two ways. He wants to purchase a certificate of deposit that pays 11% per year and invest the rest in coorporate bonds that pay 15% per year. He is looking for a total return of 12%. How much money should Carson place into each investment property?
pre calc -
treat just like any mixture problem. Add up the returns.
If x is in the CD, then 100000-x is in bonds.
.11x + .15(100000-x) = .12(100000)
x = 75,000