New parents Jim and Lucy want to start saving for their son's college education. They have $5000

Question:

New parents Jim and Lucy want to start saving for their son's college education. They have $5000 to invest in three different types of plans. A traditional savings account pays 1% annual interest, a certificate of deposit pays 3.6% annual interest, and a prepaid college plan pays 5.5% annual interest. If they want to invest the same amount in the prepaid college fund as in the other two plans together, how much should they invest in each plan to realize an interest income of $195 for the first year?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Finite Mathematics and Its Applications

ISBN: 978-0134768632

12th edition

Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair

Question Posted: