Question

An investor has ​$60000 to invest in a CD and a mutual fund. The CD yields...

An investor has ​$60000 to invest in a CD and a mutual fund. The CD yields 7​% and the mutual fund yields 5​%. The mutual fund requires a minimum investment of ​$9 000​, and the investor requires that at least twice as much should be invested in CDs as in the mutual fund. How much should be invested in CDs and how much in the mutual fund to maximize the​ return? What is the maximum​ return? To maximize​ income, the investor should place ​$ nothing in CDs and ​$ nothing in the mutual fund. ​(Round to the nearest dollar as​ needed.)

Math   Precalculus   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If you provide a handwritten answer please make sure it is legible!  Thanks! An investor has at...
If you provide a handwritten answer please make sure it is legible!  Thanks! An investor has at most ​$90,000 to invest in government​ bonds, mutual​ funds, and money market funds. The average yields for government​ bonds, mutual​ funds, and money market funds are 7%, 8​%, and 12% respectively. The​ investor's policy requires that the total amount invested in mutual and money market funds not exceed the amount invested in government bonds. How much should be invested in each type of investment...
An individual will invest $100,000 in three different stocks (A, B, C). The investor requires that...
An individual will invest $100,000 in three different stocks (A, B, C). The investor requires that the amount invested in Stock A be greater than or equal to the sum of the amounts invested in Stock B and Stock C. Stock A yields 8%, Stock B yields 13%, and Stock C yields 15%. How much money should be invested in each stock to maximize the return? Write the system of constraints and the objective function. Use Excel Solver to answer...
A pension fund manager decides to invest a total of at most ​$45 million in U.S....
A pension fund manager decides to invest a total of at most ​$45 million in U.S. Treasury bonds paying 5​% annual interest and in mutual funds paying 8​% annual interest. He plans to invest at least ​$ 5 million in bonds and at least ​$15 million in mutual funds. Bonds have an initial fee of​ $100 per million​ dollars, while the fee for mutual funds is​ $200 per million. The fund manager is allowed to spend no more than ​$...
An investor deposits $50 000 into an open-end mutual fund. The fund has a front-end load...
An investor deposits $50 000 into an open-end mutual fund. The fund has a front-end load of 2.5%, a 4% back-end load for the first year, and an expense ratio of 0.6%. If the fund earns a gross return of 13% over the year, how much money can the investor redeem at the end of the year? Select one: A. $50 263.20 B. $54 795.00 C. $56 500.00 D. $52 603.20
You have $500,000 to invest in two mutual funds. Fund A has an expected return of...
You have $500,000 to invest in two mutual funds. Fund A has an expected return of 18% and fund B has an expected return of 10%. How much must you invest in each fund to have an overall expected return of 15%?
1. To save for college, parents of a newborn child invest $12,000 in a mutual fund...
1. To save for college, parents of a newborn child invest $12,000 in a mutual fund at 10% interest, compounded semiannually, how much money will be in the account when the child is 18 years old? Round to the nearest cent. 2. Find out how long it takes a $2500 investment to double if it is invested at 7% compounded quarterly. Round to the nearest tenth of a year.
LINEAR PROGRAMMING, EXCEL SOLVER An investor has $20,000 to invest in a portfolio of three accounts....
LINEAR PROGRAMMING, EXCEL SOLVER An investor has $20,000 to invest in a portfolio of three accounts. Account 1 offers a return of 2% and at a low risk. Account 2 offers a return of 4% and has a medium risk. Account 3 offers a return of 5% but at a relatively high risk. He decides to invest no more than $3000 in Account 3 and at least twice as much in Account 1 the investment in 2. a. Formulate this...
A financier plans to invest up to $600,000 in two projects. Project A yields a return...
A financier plans to invest up to $600,000 in two projects. Project A yields a return of 10% on the investment, whereas project B yields a return of 13% on the investment. Because the investment in project B is riskier than the investment in project A, she has decided that the investment in project B should not exceed 35% of the total investment. How much should the financier invest in each project in order to maximize the return on her...
A financier plans to invest up to $500,000 in two projects. Project A yields a return...
A financier plans to invest up to $500,000 in two projects. Project A yields a return of 11% on the investment of x dollars, whereas Project B yields a return of 13% on the investment of y dollars. Because the investment in Project B is riskier than the investment in Project A, she has decided that the investment in Project B should not exceed 40% of the total investment. How much should the financier invest in each project in order...
Jose has ​$5,000 to invest for a 2​-year period. He is looking at four different investment...
Jose has ​$5,000 to invest for a 2​-year period. He is looking at four different investment choices. What will be the value of his investment at the end of 2 years for each of the following potential​ investments? a. Bank CD at 4​%. b.Bond fund at 7​%. c. Mutual stock fund at 15​%. d.New venture stock at 25​%. a.What will be the value of​ Jose's bank CD investment that offers an annual rate of return of 4​% for 2 ​years?...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT