A couple wants to invest up to $45,000. A Roth IA has a return close to 7% after one year and a CD has a rate of 4% after one year. Since a Roth IRA is riskier, they want to invest no more than $5000 in that account and at least $20,000 in a CD. How much should the couple invest in each account to maximize their return? What would the maximum return be after one year?

A couple wants to invest up to $45,000. A Roth IA has a return close to 7% after one year and a CD has a rate of 4% after one year. Since a Roth IRA is riskier, they want to invest no more than $5000 in that account and at least $20,000 in a CD. How much should the couple invest in each account to maximize their return? What would the maximum return be after one year?

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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