Investor Dan has $758,000 to invest in a CD and a mutual fund. The CD yields 4.2% and the mutual fund yields an average of 8.7%. The mutual fund requires a minimum investment of $17,000, and Dan requires that at least 5 times as much money be invested in the CD as in the mutual fund. You must invest in order to maximize his return. How much should you invest in the CD? Enter O if no investment can be made satisfying the requirements. $ SA Round to the nearest cent.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
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Investor Dan has $758,000 to invest in a CD and a mutual
fund. The CD yields 4.2% and the mutual fund yields an
average of 8.7%. The mutual fund requires a minimum
investment of $17,000, and Dan requires that at least 5
times as much money be invested in the CD as in the
mutual fund. You must invest in order to maximize his
return. How much should you invest in the CD? Enter O if
no investment can be made satisfying the requirements.
Round to the nearest cent.
LA
Transcribed Image Text:Investor Dan has $758,000 to invest in a CD and a mutual fund. The CD yields 4.2% and the mutual fund yields an average of 8.7%. The mutual fund requires a minimum investment of $17,000, and Dan requires that at least 5 times as much money be invested in the CD as in the mutual fund. You must invest in order to maximize his return. How much should you invest in the CD? Enter O if no investment can be made satisfying the requirements. Round to the nearest cent. LA
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