An investor has $70,000 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 $8,000, 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 in CDs and Sl in the mutual fund (Round to the nearest dollar as needed)
An investor has $70,000 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 $8,000, 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 in CDs and Sl in the mutual fund (Round to the nearest dollar as needed)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![**Investment Problem: Maximizing Returns**
An investor has $70,000 to invest in a Certificate of Deposit (CD) and a mutual fund. The CD yields 7%, while the mutual fund yields 5%. The mutual fund requires a minimum investment of $8,000, and the investor stipulates that at least twice as much should be invested in CDs as in the mutual fund.
The questions to address are:
1. How much should be invested in CDs to maximize the return?
2. How much should be invested in the mutual fund to maximize the return?
3. What is the maximum return?
**To maximize income, the investor should allocate:**
- $[ ] in CDs
- $[ ] in the mutual fund
(Note: Round to the nearest dollar as needed.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95b51837-d3de-4596-bfef-a158ba5cb144%2F0ffe16d5-0bb1-4f05-8e32-e4b65de73b22%2Fzegyxks_processed.png&w=3840&q=75)
Transcribed Image Text:**Investment Problem: Maximizing Returns**
An investor has $70,000 to invest in a Certificate of Deposit (CD) and a mutual fund. The CD yields 7%, while the mutual fund yields 5%. The mutual fund requires a minimum investment of $8,000, and the investor stipulates that at least twice as much should be invested in CDs as in the mutual fund.
The questions to address are:
1. How much should be invested in CDs to maximize the return?
2. How much should be invested in the mutual fund to maximize the return?
3. What is the maximum return?
**To maximize income, the investor should allocate:**
- $[ ] in CDs
- $[ ] in the mutual fund
(Note: Round to the nearest dollar as needed.)
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