How should you divide your money between fund a and fund b

Assignment Help Econometrics
Reference no: EM13209150

you have $750,000 in an IRA (individual ritirement account) at the time you retire. You have the options of investing this money in two funds. Fund A pays 2.9% annually and fund B 7.9% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income $51,750.

Reference no: EM13209150

Questions Cloud

What is the rate of change at the mean values : (y=-1.4282+8.7243(1/x)\) using the given average values for y and x of 4.8% and 1.5%, respectively what is the rate of change at these mean values
Micro and macro human service practice : What are some of the differences between micro and macro human service practice, with regards to goals and intervention strategies?
Calculate the growth rate of the variable : Second, notice that if z=x/y , then z = x * (1/y). Hence, using the formula mentioned above, g(z)=g(x)+g(1/y). So all you need is find a clever way to calculate the growth rate of the variable 1/y, namely g(1/y).
Origin of bourbon-vodka-gin-rum brandy and tequila : Define distillation and the origin of bourbon, vodka, gin, rum brandy and tequila.
How should you divide your money between fund a and fund b : you have $750,000 in an IRA (individual ritirement account) at the time you retire. You have the options of investing this money in two funds. Fund A pays 2.9% annually and fund B 7.9% annually. How should you divide your money between Fund A and ..
Multi-valued dependencies-functional dependencies : multi-valued dependencies, functional dependencies, candidate keys, primary keys, and foreign keys. State any assumptions you made.
Software modules for finance-accounting-human resources : A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes,
Why is strategic communication aimed : Why is strategic communication aimed at informing and appropriately influencing key audiences by synchronizing and integrating communication efforts to deliver truthful, timely, accurate, and credible information essential?
Compare the number of valence electrons an oxygen : Compare the number of valence electrons an oxygen, o, atom has with the number of valence electrons a selenium, se, atom has. Are oxygen and selenium in the same period or group?

Reviews

Write a Review

Econometrics Questions & Answers

  Describe the process through which money is created

Explain the process through which money is constructed. Describe how current events less than ninety days have affected this process and the effect current events will have on the economy as a whole.

  Determine the optimal price and output for the shop

A former employee decides to sue QopyQat, alleging employment discrimination. Although management claims innocence, they agree to settle out of court. The settlement requires QopyQat to pay the employee $10,000 per month for the next year.

  When the same efforts must be made to uncork and pour bottle

Most restaurant customers tip according to a percentage rule - between 15 and 25 percent of the bill. Diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle.

  Find the percentile of the distribution

Assume a normal random variable x, with mean 100 and standard deviation 20. a. Find the probability that a randomly chosen value of x is less than 95. b. Find the probability that a randomly chosen value of x is between 60 and 100. c. Find the 95th p..

  Predictable performance cycles for walmart

Are there any predictable performance cycles for Wal-mart? If so, what are the periods over which its cycle waxes and wanes?

  Calculate the average cost of producing

Does the firm have constant, increasing, or decreasing returns to scale? Why? If wages are $20,000 per person per operating period and capital units for $3,000 per unit per operating period, calculate the average cost of producing 12,000 units and..

  Determine loan without interest for four years

The market interest rate is 10 percent and is expected to stay at that level. Explain your choice in each of the following situation: a. Would you prefer $500 gift today or $540 gift next year b. Would you prefer a $100 gift now or $500 loan without..

  Advantage of the production function

A major advantage of production function is that it can be easily transformed into a linear function, and thus can be analyzed with the linear regression method.

  How the intermediaries come from a competitive market

Now assume that intermediaries come from a competitive market with an equilibrium price of $8 per unit for their services, that is, any buyer or seller who wants an intermediary's services must pay $8 for them. What is the maximum per unit that se..

  Why does the autonomous expenditure decreases

how can you explain this is words We can't say consumers are going to save a portion of the 10 taxes because you can't save something that is being taken away from you. Why does the autonomous expenditure decrease by a fraction of the tax in this..

  What kind of expression is this?

Suppose the inverse demand for a product is Q = ?P 1/2 + 10. Write the expression for the demand curve, i.e., P = f(Q). What kind of expression is this?

  What is the long-run average cost

A firm has a production function Q=F(K,L) with the constant return to scale, where k is units of capital and L is unites of labour.Imput prices are r=$2 per unit of K and w=$1 per unit of L.When it produces 5 units of output,it uses 2 units of cap..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd