SOLUTION: A retired couple has $160,000 to invest to obtain annual income. They want some of it invested in safe certificates of deposit yielding 6%. The rest they want to invest in AA bon

Question 593732: A retired couple has $160,000 to invest to obtain annual income. They want some of it invested in safe certificates of deposit yielding 6%. The rest they want to invest in AA bonds, yielding 11% per year. How much should they invest in each to realize exactly $15,600 per year?
Answer by mananth(16946) (Show Source): You can put this solution on YOUR website!
Certificates 6.00% per annum ---x
AA bond 11.00% per annum ---y

x + 1 y= 160000 ------------------------1

6.00% x + 11.00% y= 15600
Multiply by 100
6 x + 11 y= 1560000.00 --------2
Multiply (1) by -6
we get
-6 x -6 y= -960000.00
Add this to (2)
0 x 5 y= 600000
divide by 5
y = 120000
Certificates 11.00% $ 120000
AA bond 6.00% $ 40000

CHECK
120000 --------- 11.00% ------- 13200.00
40000 ------------- 6.00% ------- 2400.00
Total -------------- 15600.00

m.ananth@hotmail.ca

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