A woman has $216,000 to invest and wants to generate $12,000 per year in interest income. She can invest in two tax-free funds. The first is stable, but pays only 4.5%. The second pays 9.25%, but has a greater risk. If she wants to minimize the amount of money invested in the second fund, how much should she invest in the first fund?

A woman has $216,000 to invest and wants to generate $12,000 per year in interest income. She can invest in two tax-free funds. The first is stable, but pays only 4.5%. The second pays 9.25%, but has a greater risk. If she wants to minimize the amount of money invested in the second fund, how much should she invest in the first fund?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 68P

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