Question: 1 The controller (money manager) for a small company puts some money in a bank account paying 3% per year. He uses some additional money,

1 The controller (money manager) for a small company puts some

1 The controller (money manager) for a small company puts some money in a bank account paying 3% per year. He uses some additional money, amounting to 3 the amount placed in the bank, to buy bonds paying 4% per year. With the balance of the funds, he buys a 8% certificate of deposit. The first year the investments bring a return of $534. If the total of the investments is $10,000 how much is invested at each rate? The amount in the bank account is $ the amount in the bonds is $ and the amount in the certificate of deposit is $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

L Ltd. buys 550 shares of S Ltd. which is based on 1,000 shares at 5.00 EUR. At the time of acquisition the Retained Earnings account is 1,500.00 EUR. At the beginning of the fiscal year, the opening...

The controller ( money manager ) for a small company puts some money in a bank account paying 3 % per year. He uses some additional money, amounting to 1 3 the amount placed in the bank, to buy bonds...

The controller (money manager) for a small company puts some money in a bank account paying 3% per year. He uses some additional money, amounting to 1/3 the amount placed in the bank, to buy bonds...

The controller ( money manager ) for a small company puts some money in a bank account paying 4 % per year. He uses some additional money, amounting to 1 3 the amount placed in the bank, to buy bonds...

The controller ( money manager ) for a small company puts some money in a bank account paying 5 % per year. He uses some additional money, amounting to 1 3 the amount placed in the bank, to buy bonds...

The controller (money manager) for a small company puts some money in a bank account paying 2% per year. He uses some additionalmoney, amounting to 13 the amount placed in the bank, to buy bonds...

controller (money manager) for a small company puts some money in a bank account paying 5% per year. He uses some addon money, amourtigo te amount placed in the bars, we buy bonds paying on pur per...

1. True or False: If a company improves its profitability, asset management, liquidity, and market value between two consecutive years, then its total debt to total capital must have gone down. 2....

please show me calculation/workings try to solve as many as possible please 5. Your friend is considering investing $5,000 at the end of every quarter in a bank account paying 8% per annum. The first...

Problem Set 1 Present Value Basics 1. Deposit $5000 today in an account paying 12% per year. How much will you have in six years? 2. Suppose you need $20,000 in three years to pay tuition at MU. If...

please show calculations/workings 4. The stated (nominal) interest rate that a bank charges on its home loans is 12.0% and the effective annual interest rate has been computed as 12.55%. Based on...

The ÎG° for the equilibrium in Fig. P7.67ais 4.73 kJ mol-1 (t.13 kcal mol-1. (The equilibrium favors conformation A.) (a) Which behaves as if it is larger, methyl or phenyl (Ph)? iWhy is...

Discuss the basic idea of MD simulation that distinguishes it from quantum mechanics calculation. Using this concept, derive the equation of motion to produce an algorithm integrating a numerical...

a . Price 2 2 years to maturity US treasury with 5 % coupon rate and 4 . 0 % yield. b . Calculate section a bond price 1 0 3 days into a 1 8 2 - coupon period. Show the dirty price, accrued interest...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...