SOLUTION: A retired woman has $60,000 to invest but needs to make $6,000 a year from the interest to meet certain living expenses. One bond investment pays 15% annual interest. The rest of i

Question 1016197: A retired woman has $60,000 to invest but needs to make $6,000 a year from the interest to meet certain living expenses. One bond investment pays 15% annual interest. The rest of it she wants to put in a CD that pays 7%.
Set up and solve the equation for how much the woman should invest in each option to sustain exactly a $6,000 annual return.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
x=bond paying 15%
60,000-x = CD paying 7%
(you can use x and y, but this way uses one variable).
.15x+.07x(60000-x)=6000
.15x+4200-.07x=6000
0.08x=1800
x=22,500
60000-x=37,500
$22500 at 15% pays $3375
$37,500 at 7% pays $2625
They add to $6000
RELATED QUESTIONS
A retired woman has $80,000 to invest but needs to make $6,000 a year from the interest... (answered by Theo)

A retired woman has $50,000 to invest but needs to make $6,000 a year from the interest... (answered by addingup)

A retired woman has $90,000 to invest but needs to make $3,000 a year from the interest... (answered by Theo)

A retired couple has $192,000 to invest. A safe investment yields 9.5% per year, but a... (answered by ikleyn)

Carter expects to live for 30 years more after his retirement. He would like to withdraw... (answered by Theo)

Please help solving bi,ii Carter expects to live for 30 years more after his retirement. (answered by Theo)

Carter expects to live for 30 years more after his retirement. He would like to withdraw... (answered by asinus)

a) Carter expects to live for 30 years more after his retirement. He would like to... (answered by ikleyn)

Question 2 (20 marks) a) Carter expects to live for 30 years more after his retirement.... (answered by asinus)