Chris wants to have an income of $8200 per year from investments. To that end he is going to invest $90,000 in three different accounts. These accounts pay 6%, 10%, and 12% simple interest. If he wants to invest the same amount in the account paying 6% simple interest as he has in the account paying 12% simple interest, how much should go into each account?

Chris wants to have an income of $8200 per year from investments. To that end he is going to invest $90,000 in three different accounts. These accounts pay 6%, 10%, and 12% simple interest. If he wants to invest the same amount in the account paying 6% simple interest as he has in the account paying 12% simple interest, how much should go into each account?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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Similar questions

Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
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