Ask questions and get helpful responses.

math

Cyndee wants to invest $50,000. Her financial planner advises her to invest in three types of accounts: one paying 3%, one paying 5 1/2%, and one paying 6% simple interest per year. Cyndee wants to put twice as much in the lowest-yielding, least-risky account as in the highest-yielding account. How much should she invest in each account to achieve a total annual return of $2165?

  1. 👍
  2. 👎
  3. 👁
  4. ℹ️
  5. 🚩
  1. P Dollars @ 6%, 2P Dollars @ 3%, (50,000-3P) @ 5.5

    0.06P + 0.03(2P) + 0.055(50,000-3P) = 2165.

    0.06P + 0.06P + 2750 - 0.165P = 2165, -.045P = 2165-2750 = -585, P = $13,000 @ 6%.

    2P = $26,000 @ 3%.

    (50,000-39,000) = $11,000 @ 5.5%.

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩

Respond to this Question

First Name

Your Response

Still need help? You can ask a new question.