ed moura has $11000 invested in 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%
To solve this problem, we can set up an equation based on the given information.
Let's assume that the additional amount Ed Moura invests in the certificate of deposit is x dollars.
The interest earned from the initial investment at 6% is calculated as 0.06 * $11,000 = $660.
The interest earned from the additional investment at 3% is calculated as 0.03 * x.
The total interest earned from both investments at an average return of 4% is calculated as 0.04 * ($11,000 + x).
Now we can set up the equation:
660 + 0.03x = 0.04(11,000 + x)
To solve for x, we can simplify the equation:
660 + 0.03x = 440 + 0.04x
0.04x - 0.03x = 440 - 660
0.01x = 220
x = 220 / 0.01
x = $22,000
So, Ed Moura should invest an additional $22,000 in certificates of deposit to achieve an average return of 4% on his total investment.