Investor Matt has $659,000 to invest in a CD and a mutual Fund. The CD yields 6.7% and the mutual fund yields an average of 5.2%. The mutual fund requires a minimum investment of $18,000, and Matt requires that at least 4 times as much money be invested in the CD as in the mutual fund. You must invest in order to maximize his return. What is the maximum return? Enter O if no investment can be made satisfying the requirements. $. Round to the nearest cent.
Investor Matt has $659,000 to invest in a CD and a mutual Fund. The CD yields 6.7% and the mutual fund yields an average of 5.2%. The mutual fund requires a minimum investment of $18,000, and Matt requires that at least 4 times as much money be invested in the CD as in the mutual fund. You must invest in order to maximize his return. What is the maximum return? Enter O if no investment can be made satisfying the requirements. $. Round to the nearest cent.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Investor Matt has $659,000 to invest in a CD and a mutual
fund. The CD yields 6.7% and the mutual fund yields an average
of 5.2%. The mutual fund requires a minimum investment of
$18,000, and Matt requires that at least 4 times as much money
be invested in the CD as in the mutual fund. You must invest in
order to maximize his return. What is the maximum return?
Enter O if no investment can be made satisfying the
requirements.
$
Round to the nearest cent.
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