Kyle just retired, and has $570,000 to invest. A very safe Certificate of Deposit (CD) account pays 1.5%, while a riskier bond fund pays 6% in interest. Kyle figures he needs $20,000 a year in interest to live on. How much should he invest in each account to make enough interest while minimizing his risk? $ ____ at 1.5% $ ______ at 6% Round answers to the nearest dollar.
Kyle just retired, and has $570,000 to invest. A very safe Certificate of Deposit (CD) account pays 1.5%, while a riskier bond fund pays 6% in interest. Kyle figures he needs $20,000 a year in interest to live on. How much should he invest in each account to make enough interest while minimizing his risk? $ ____ at 1.5% $ ______ at 6% Round answers to the nearest dollar.
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
ChapterP: Prerequisites
SectionP.CR: Chapter Review
Problem 132E
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Kyle just retired, and has $570,000 to invest. A very safe Certificate of Deposit (CD) account pays 1.5%, while a riskier bond fund pays 6% in interest. Kyle figures he needs $20,000 a year in interest to live on. How much should he invest in each account to make enough interest while minimizing his risk?
$ ____ at 1.5%
$ ______ at 6%
Round answers to the nearest dollar.
$ ______ at 6%
Round answers to the nearest dollar.
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