Financial Planning Mark has $100,000 to invest. His financial consultant advises him to diversify his investment in three types of bonds: short-term, intermediate-term, and long-term. The short-term bonds pay 4%, the intermediate- term bonds pay 5%, and the long-term bonds pay 6% simple interest per year. Mark wishes to realize a total annual income of 5.1%, with equal amounts invested in short- and intermediate-term bonds. How much should he invest in each type of bond?

Financial Planning Mark has $100,000 to invest. His financial consultant advises him to diversify his investment in three types of bonds: short-term, intermediate-term, and long-term. The short-term bonds pay 4%, the intermediate- term bonds pay 5%, and the long-term bonds pay 6% simple interest per year. Mark wishes to realize a total annual income of 5.1%, with equal amounts invested in short- and intermediate-term bonds. How much should he invest in each type of bond?

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

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Similar questions

What interest rate would you need to get to double an investment of 200 in eight years?
What is the total effect on the economy of a government tax rebate of $500 to each household in order to stimulate the economy if each household will spend of the rebate in goods and services?

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