Stephanie inherited $40,000. She wants to put some of the money in a certificate of deposit that pays 2.1% interest per year and the rest in a mutual fund account that pays 6.5% per year. How much should she invest in each account if she wants to earn 5.4% interest per year on the total amount?
Stephanie inherited $40,000. She wants to put some of the money in a certificate of deposit that pays 2.1% interest per year and the rest in a mutual fund account that pays 6.5% per year. How much should she invest in each account if she wants to earn 5.4% interest per year on the total amount?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 13E
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Question
Stephanie inherited $40,000. She wants to put some of the money in a certificate of deposit that pays 2.1% interest per year and the rest in a mutual fund account that pays 6.5% per year. How much should she invest in each account if she wants to earn 5.4% interest per year on the total amount?
![Stephanie inherited $40,000. She wants to put some of the money in a certificate of deposit that pays 2.1% interest per
year and the rest in a mutual fund account that pays 6.5% per year. How much should she invest in each account if she
wants to earn 5.4% interest per year on the total amount?
Provide your answer below:
certificate, $
mutual fund](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60d2e4c0-3298-4181-bde8-7183824ebe71%2Fae2b49ba-9185-4943-b384-5c042f904899%2Fsmsx1v_processed.png&w=3840&q=75)
Transcribed Image Text:Stephanie inherited $40,000. She wants to put some of the money in a certificate of deposit that pays 2.1% interest per
year and the rest in a mutual fund account that pays 6.5% per year. How much should she invest in each account if she
wants to earn 5.4% interest per year on the total amount?
Provide your answer below:
certificate, $
mutual fund
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