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    an investor has ​$ to invest in a cd and a mutual fund. the cd yields ​% and the mutual fund yields ​%. the mutual fund requires a minimum investment of ​$​, and the investor requires that at least twice as much should be invested in cds as in the mutual fund. how much should be invested in cds and how much in the mutual fund to maximize the​ return? what is the maximum​ return?

    James

    Guys, does anyone know the answer?

    get an investor has ​$ to invest in a cd and a mutual fund. the cd yields ​% and the mutual fund yields ​%. the mutual fund requires a minimum investment of ​$​, and the investor requires that at least twice as much should be invested in cds as in the mutual fund. how much should be invested in cds and how much in the mutual fund to maximize the​ return? what is the maximum​ return? from EN Bilgi.

    An investor has $60,000 to invest in a CD and a mutual fund.

    Find step-by-step solutions and your answer to the following textbook question: An investor has $60,000 to invest in a CD and a mutual fund. The CD yields 5% and the mutural fund yields an average of 9%. The mutual fund requires a minimum investment of$10,000, and the investor requires that at least twice as much should be invested in CDs as in the mutual fund. How much should be invested in CDs and how much in the mutual fund to maximize the return? What is the maximum return?.

    Question

    An investor has $60,000 to invest in a CD and a mutual fund. The CD yields 5% and the mutural fund yields an average of 9%. The mutual fund requires a minimum investment of$10,000, and the investor requires that at least twice as much should be invested in CDs as in the mutual fund. How much should be invested in CDs and how much in the mutual fund to maximize the return? What is the maximum return?

    Explanation

    Verified

    Given: $60,000 that is supposed to be spread over the CD and mutual fund.\

    \textbf{Determine return}\

    Let x

    xbe the amount invested in the CD, then$60000-x

    represents the amount invested in the mutual fund (as the total amount invested is \$60,000).\\ The yield is 5\% on the CD and 9\% on the mutual fund.\\ The return on each bond is then the product of the yield and the amount invested. \begin{align*} \text{Return}&=\text{Return on CD}+\text{Return on mutual funds} \\ &=5\%\times x+9\%\times (60000-x) \\ &=0.05\times x+0.09\times (60000-x) \\ &=0.05x+5400-0.09x \\ &=5400-0.04x \end{align*} We then note that the return increases as

    representstheamountinvestedinthemutualfund(asthetotalamountinvestedis$60,000).

    Theyieldis5%ontheCDand9%onthemutualfund.

    Thereturnoneachbondisthentheproductoftheyieldandtheamountinvested.

    Return ​

    =Return on CD+Return on mutual funds

    =5%×x+9%×(60000−x)

    =0.05×x+0.09×(60000−x)

    =0.05x+5400−0.09x =5400−0.04x ​

    Wethennotethatthereturnincreasesas

    x

    decreases and thus the smallest possible value of

    decreasesandthusthesmallestpossiblevalueofx$ result in the maximum return.

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    Related questions

    QUESTION

    An investor has $60,000 to invest in a CD and a mutual fund. The CD yields 5% and the mutual fund yields an average of 9%. The mutual fund requires a minimum investment of$10,000, and the investor requires that at least twice as much should be invested in CDs as in the mutual fund. How much should be invested in CDs and how much in the mutual fund to maximize the return? What is the maximum return ?

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    You are considering an investment in a mutual fund with a 4% load and an expense ratio of .5%. You can invest instead in a bank CD paying 6% interest. If you plan to invest for two years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns.

    QUESTION

    Kami has up to $25,000 to invest and can divide it among three investments to maximize her return: (1) a money market account that pays 1.05% annually, (2) a mutual fund that pays 5% annually, and (3) a certificate of deposit (CD) that pays 1.66% annually. She does not want to invest more than$10,000 between the mutual fund and the CD. In addition, the amount invested in the CD cannot exceed the amount invested in the money market by more than $1500.$ $$ $(a) Determine how much Kami should put into each investment. $$ $$ (b) What is the maximum return? $$

    QUESTION

    Kami has up to $25,000 to invest and can divide it among three investments: (1) a money market account that pays 1.05% annually, (2) a mutual fund that pays 5% annually, and (3) a certificate of deposit (CD) that pays 1.66% annually. She wants to maximize her return, but does not want to invest more than$10,000 between the mutual fund and the CD. In addition, the amount invested in the CD cannot exceed the amount invested in the money market by more than $1500. (a) Define the variables. (b) Write the maximum problem in standard form. (c) Introduce slack variables. (d) Set up the initial tableau.

    Source : quizlet.com

    how much to invest in CD and mutual funds.

    how much to invest in CD and mutual funds.

    MATH Francesca S. asked • 06/17/18

    how much to invest in CD and mutual funds.

    an investor has 75,000$ to invest in CD and mutual funds. The CD yields 7% and mutual funds 5%. the mutual fund requires a minimum investment of $9000 and the investor requires that at least twice as much should be invested in CDs as mutual funds. How much should be invested in Cds? How much in mutual funds? what is the maximum return?

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    1 Expert Answer

    By:

    Andy C. answered • 06/17/18

    TUTOR 4.9 (27) Math/Physics Tutor

    SEE TUTORS LIKE THIS

    X is the amount in Mutual Funds

    Y is the amount in CDs

    Here are the constraints:

    Y = 2x x>9000 Y = 75000 - x

    There should be at least 2x + x = 75000

    3x = 75000 x = 25000

    50000 in CDs and 25000 in mutual funds

    The objective function for the return of investment is R(x,y) = 0.05X + 0.07Y

    Graphing these linear equations and inequalities, the vertices of the critical region are

    (9000,18000) ----> 1710

    (25000,50000)  -----> 4750

    (75000,0) ----> 3750

    25000 in mutual funds

    50000 in CDs Upvote 0 Downvote Add comment More

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    Solved An investor has 75,000 to invest in a CD and a mutual

    Answer to Solved An investor has 75,000 to invest in a CD and a mutual

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    James 9 day ago
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