Question
Santiago just retired and has $630,000 to invest. A very safe Certificate of Deposit (CD) account pays 1%, while a riskier bond fund pays 8%
Santiago just retired and has $630,000 to invest. A very safe Certificate of Deposit (CD) account pays 1%, while a riskier bond fund pays 8% in interest. Santiago figures he needs $44,000 a year in interest to live on. How much should he invest in each account to make enough interest while minimizing his risk?
___$ at 1%
___$ at 8%
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Solo let 11 and y be the principle of 1 and 8 type of investment x x y 630000 And 001x an...
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
15th edition
132554909, 978-0132554909
