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Finance

how much should be invested in each account?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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Question

A total of $240,000.00 is to be invested into two accounts. The first account pays 3% interest and thesecond account pays 8% interest. If the interest earned by both accounts combined needs to be 5% for tax reasons, how much should be invested in each account?

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