QuestionEd Moura has \$55000 in stocks at 9\%. How much more should he invest at 2\% for an average return of 3\%?

Studdy Solution

STEP 1

Assumptions1. The initial amount invested in stocks is $55,000. The interest rate for the stocks is9%
3. The interest rate for the certificates of deposit is%
4. The desired average return on the two investments is3%
5. The interest is calculated as a simple interest, not compounding

STEP 2

We need to find the amount of money Ed needs to invest in certificates of deposit. Let's denote this amount by $x$ .

STEP 3

The total return from the two investments should be equal to the total investment times the desired average return. We can write this as an equation $55000 \times0.09 + x \times0.02 = (55000 + x) \times0.03$

STEP 4

implify the equation by performing the multiplication on both sides.
$4950 +0.02x =1650 +0.03x$

STEP 5

Rearrange the equation to isolate $x$ on one side.
$0.02x -0.03x =1650 -4950$

STEP 6

implify the equation.
$-0.01x = -3300$

STEP 7

olve for $x$ by dividing both sides of the equation by -0.01.
$x = \frac{-3300}{-0.01}$

STEP 8

Calculate the value of $x$ .
$x = \$330,000$ Ed Moura should invest an additional $330,000 in certificates of deposit to achieve an average return of3% on his investments.

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QuestionEd Moura has \$55000 in stocks at 9\%. How much more should he invest at 2\% for an average return of 3\%?

Studdy Solution

STEP 1

Assumptions1. The initial amount invested in stocks is $55,000. The interest rate for the stocks is9%
3. The interest rate for the certificates of deposit is%
4. The desired average return on the two investments is3%
5. The interest is calculated as a simple interest, not compounding

STEP 2

We need to find the amount of money Ed needs to invest in certificates of deposit. Let's denote this amount by $x$ .

STEP 3

The total return from the two investments should be equal to the total investment times the desired average return. We can write this as an equation $55000 \times0.09 + x \times0.02 = (55000 + x) \times0.03$

STEP 4

implify the equation by performing the multiplication on both sides.
$4950 +0.02x =1650 +0.03x$

STEP 5

Rearrange the equation to isolate $x$ on one side.
$0.02x -0.03x =1650 -4950$

STEP 6

implify the equation.
$-0.01x = -3300$

STEP 7

olve for $x$ by dividing both sides of the equation by -0.01.
$x = \frac{-3300}{-0.01}$

STEP 8

Calculate the value of $x$ .
$x = \$330,000$ Ed Moura should invest an additional $330,000 in certificates of deposit to achieve an average return of3% on his investments.

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QuestionEd Moura has \$55000 in stocks at 9\%. How much more should he invest at 2\% for an average return of 3\%?

Studdy Solution

STEP 1

Assumptions1. The initial amount invested in stocks is $55,000. The interest rate for the stocks is9%3. The interest rate for the certificates of deposit is%4. The desired average return on the two investments is3%5. The interest is calculated as a simple interest, not compounding

STEP 2

We need to find the amount of money Ed needs to invest in certificates of deposit. Let's denote this amount by xxx.

STEP 3

The total return from the two investments should be equal to the total investment times the desired average return. We can write this as an equation55000×0.09+x×0.02=(55000+x)×0.0355000 \times0.09 + x \times0.02 = (55000 + x) \times0.0355000×0.09+x×0.02=(55000+x)×0.03

STEP 4

implify the equation by performing the multiplication on both sides.4950+0.02x=1650+0.03x4950 +0.02x =1650 +0.03x4950+0.02x=1650+0.03x

STEP 5

Rearrange the equation to isolate xxx on one side.0.02x−0.03x=1650−49500.02x -0.03x =1650 -49500.02x−0.03x=1650−4950

STEP 6

implify the equation.−0.01x=−3300-0.01x = -3300−0.01x=−3300

STEP 7

olve for xxx by dividing both sides of the equation by -0.01.x=−3300−0.01x = \frac{-3300}{-0.01}x=−0.01−3300​

STEP 8

Calculate the value of xxx.x=$330,000x = \$330,000x=$330,000Ed Moura should invest an additional $330,000 in certificates of deposit to achieve an average return of3% on his investments.

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Assumptions1. The initial amount invested in stocks is $55,000. The interest rate for the stocks is9%
3. The interest rate for the certificates of deposit is%
4. The desired average return on the two investments is3%
5. The interest is calculated as a simple interest, not compounding

We need to find the amount of money Ed needs to invest in certificates of deposit. Let's denote this amount by $x$ .

The total return from the two investments should be equal to the total investment times the desired average return. We can write this as an equation $55000 \times0.09 + x \times0.02 = (55000 + x) \times0.03$

implify the equation by performing the multiplication on both sides.
$4950 +0.02x =1650 +0.03x$

Rearrange the equation to isolate $x$ on one side.
$0.02x -0.03x =1650 -4950$

implify the equation.
$-0.01x = -3300$

olve for $x$ by dividing both sides of the equation by -0.01.
$x = \frac{-3300}{-0.01}$

Calculate the value of $x$ .
$x = \$330,000$ Ed Moura should invest an additional $330,000 in certificates of deposit to achieve an average return of3% on his investments.