What is the guaranteed return


PERSONAL INVESTMENTS

Response to the following problem:

George Rifkin is considering investing some or all of a $60,000 inheritance in a one-year certificate of deposit paying a fixed 6 % or a venture capital group project with a guaranteed 3% return but the potential of earning 1 0 %. George would like to invest the minimum amount of month necessary to achieve a potential return of at least $4000 and a guaranteed return of at least $2000. Formulate a mathematical model and recommend an investment strategy for George.

How much of his $60,000 can he keep for his personal use during the year and still meet his investment criteria?

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Financial Accounting: What is the guaranteed return
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