A couple wants to invest up to $45,000. A Roth IA has a return close to 7% after one year and a CD has a rate of 4% after one year. Since a Roth IRA is riskier, they want to invest no more than $5000 in that account and at least $20,000 in a CD. How much should the couple invest in each account to maximize their return? What would the maximum return be after one year?
A couple wants to invest up to $45,000. A Roth IA has a return close to 7% after one year and a CD has a rate of 4% after one year. Since a Roth IRA is riskier, they want to invest no more than $5000 in that account and at least $20,000 in a CD. How much should the couple invest in each account to maximize their return? What would the maximum return be after one year?
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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A couple wants to invest up to $45,000. A Roth IA has a return close to 7% after one year and a CD has a rate of 4% after one year. Since a Roth IRA is riskier, they want to invest no more than $5000 in that account and at least $20,000 in a CD.
- How much should the couple invest in each account to maximize their return?
- What would the maximum return be after one year?
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