Question

Ed Moura has $62,000 in stocks paying 8%. How much additional money should he invest in certificates of deposit paying 4% so that the average return on the two investments is 5%?

Answer 1

x = amount invested in the CDs at 4%

well, we know that he invested already 62000 on some stocks, then he'll be investing "x" on CDs, so the total amount invested will be 62000 + x.

`\bf \begin{array} \cline{1-1} \textit{a\% of b}\\ \cline{1-1} \\ \left( \cfrac{a}{100} \right)\cdot b \\\\ \cline{1-1} \end{array}\hfill \stackrel{\textit{8\% of 62000}}{\left( \cfrac{8}{100} \right)62000}~\hfill \stackrel{\textit{4\% of`

`\bf \stackrel{\textit{8\% of 62000}}{4960}+\stackrel{\textit{4\% of`