Mr. and Mrs. Garcia have a total of $100,000 to be invested in stocks, bonds, and a
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Mr. and Mrs. Garcia have a total of $100,000 to be invested in stocks, bonds, and a money market account. The stocks have a rate of return of 12%/year, while the bonds and the money market account pay 8% and 4%/year, respectively. They have stipulated that the amount invested in the money market account should be equal to the sum of 20% of the amount invested in stocks, and 10% of the amount invested in bonds. How should the Garcias allocate their resources, if they require an annual income of $10,000 from their investments?
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
Posted Date: