Jake has $225,000 to invest. He chooses one money market fund that pays % 6.2 and a mutual fund that has more risk but has averaged %8.2 per year. If his goal is to average 6.6% per year with minimal risk, how much should he invest in each fund?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Jake has $225,000 to invest. He chooses one money market fund that pays % 6.2 and a mutual fund that has more risk but has averaged %8.2 per year. If his goal is to average 6.6% per year with minimal risk, how much should he invest in each fund?
Given,
Total money =$225,000
Let us consider that the money invested at 6.2% be x,
So at 8.2% = $225,000 - x
So, the overall annual interest is 6.6%
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