FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

23 Mamadou just retired, and has $870,000 to invest. A very safe Certificate of Deposit (CD) account pays 1%, while a riskier bond fund pays

23

image text in transcribed
Mamadou just retired, and has $870,000 to invest. A very safe Certificate of Deposit (CD) account pays 1%, while a riskier bond fund pays 8.5% in interest. Mamadou figures he needs $30,000 a year in interest to live on. How much should he invest in each account to make enough interest while minimizing his risk? at 1% at 8.5% Round answers to the nearest dollar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Saxon Algebra 1/2 An Incremental Development, Test Forms

Saxon Algebra 1/2 An Incremental Development, Test Forms

Authors: Saxon Publishers

3rd Edition

9781591411734, 1591411734

More Books

Students also viewed these Mathematics questions

Question

★★★★★
A person tosses a ball for her puppy to retrieve. The ball leaves her hand horizontally with a speed of 4.6 m/s. If the initial height of the ball is 0.95 m above the ground, how far does it travel...

Answered: 1 week ago

Question

★★★★★
You always wanted to work for a big bank, and you got lucky this year. The Hong Kong Bank hired you as a loan officer. Today, a Chief Financial Officer (CFO) from GoldMines came to ask you for a...

Answered: 1 week ago

Question

★★★★★
2. Calculate the number of kanbans required for the following four components at the ABC Company in problem 1. W X Daily usage 900 Lead time 2 hours 5 hours 250 Component Y 1,200 1 hour Z 350 3 hours...

Answered: 1 week ago

Question

★★★★★
Freight car loadings over a 12-year period at a busy port are as follows: a. Determine a linear trend line for expected freight car loadings. b. Use the trend equation to predict expected loadings...

Answered: 1 week ago

Question

★★★★★
23 Mamadou just retired, and has $870,000 to invest. A very safe Certificate of Deposit (CD) account pays 1%, while a riskier bond fund pays 8.5% in interest. Mamadou figures he needs $30,000 a year...

Answered: 1 week ago

Question

★★★★★
Imperial Jewelers is considering a special order for 12 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $402.00 and its...

Answered: 1 week ago

Question

★★★★★
ase 4-16 Bank Reconciliation Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February 2019 indicated the following: Balance, February 28,...

Answered: 1 week ago

Question

★★★★★
Problem 6-38 (LO. 2) Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2020. Gross receipts were $300,000. The following expenses were incurred and paid as indicated:...

Answered: 1 week ago

Question

★★★★★
1 . What is the EVC for MinuteGrocer's monthly service? Consider ALL four scenarios in Table 2 ( two scenarios for target segment and two scenarios for service fee and suggested tips ) . 2 . How...

Answered: 1 week ago

Question

★★★★★
es Check my Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosur notes for the year ended February 1, 2020, are available here....

Answered: 1 week ago

Question

★★★★★
P13-11A The comparative statements of financial position for Amaral Reis Company SA as of December 31 are presented as follows. AMARAL REIS COMPANY SA Comparative Statements of Financial Position...

Answered: 1 week ago

Previous Question Next Question