IRA. You have $500,000 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 5.2 % annually and Fund B pays 7.7 % annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $ 34 , 000 ?
IRA. You have $500,000 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 5.2 % annually and Fund B pays 7.7 % annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $ 34 , 000 ?
Solution Summary: The author calculates an annual interest income of 34,000 if one has a 50,000 IRA.
IRA. You have
$500,000
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
5.2
%
annually and Fund
B
pays
7.7
%
annually. How should you divide your money between Fund
A
and Fund
B
to produce an annual interest income of
$
34
,
000
?
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