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You have $250,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing this money in two funds: Fund A pays 2.22.2% annually and Fund B pays 7.2% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $9000

You have $250,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing this money in two funds: Fund A pays 2.22.2% annually and Fund B pays 7.2% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $9000

Essentials Of Investments
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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You have $250,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing this money in two funds: Fund A pays 2.22.2% annually and Fund B pays 7.2% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $9000
Transcribed Image Text:You have $250,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing this money in two funds: Fund A pays 2.22.2% annually and Fund B pays 7.2% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $9000
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