4. An investor has P 70,000 and places part of it in bonds paying 12% interest per year and the rest in acertificate of deposit (C.D) paying 8% interest per year. She wishes to receive an overall return interestof 9% per year. How much should she place in each investment.

We need to use simple interest formula Simple interest =principal*rate *time

Answered: 4. An investor has P 70,000 and places…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1QTD

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4. An investor has P 70,000 and places part of it in bonds paying 12% interest per year and the rest in a certificate of deposit (C.D) paying 8% interest per year. She wishes to receive an overall return interest of 9% per year. How much should she place in each investment.