Investor Matt has $822,000 to invest in a CD and a mutual fund. The CD. yields 4.1% and the mutual fund yields an average of 7.4%. The mutual fund requires a minimum investment of $16,000, and Matt requires that at least 5 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 0 if no investment can be made satisfying the requirements. %$4 Round to the nearest cent.

Investor Matt has $822,000 to invest in a CD and a mutual fund. The CD. yields 4.1% and the mutual fund yields an average of 7.4%. The mutual fund requires a minimum investment of $16,000, and Matt requires that at least 5 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 0 if no investment can be made satisfying the requirements. %$4 Round to the nearest cent.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 3FPE

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An investor has $80,000 to invest in a CD and a mutual fund. The CD yields 8% and the mutual fund yields 7%. 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 $ in CDs and $ in the mutual fund. (Round to the nearest dollar as needed.)
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An investor has $80,000 to invest in a CD and a mutual fund. The CD yields 6% 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?