document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=337162>Question 337162</A>: <I><SPAN STYLE=\"word-break: break-all;\"> How do you set up this word problem using I=P*R*T?\r<BR>\n" );
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document.write( "Steve has $25,000 to invest and wishes to earn an overall annual rate of return of 8%. His financial advisor recommends that he invest some of the money in a 5-year CD paying 4% per annum and the rest in a corporate bond paying 9% per annum. How much should be placed in each investment in order for Steve to achieve his goal? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #241664 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=241664\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> How do you set up this word problem using I=P*R*T? <BR>\n" );
document.write( "Steve has $25,000 to invest and wishes to earn an overall annual rate of return of 8%. His financial advisor recommends that he invest some of the money in a 5-year CD paying 4% per annum and the rest in a corporate bond paying 9% per annum. How much should be placed in each investment in order for Steve to achieve his goal?<BR>\n" );
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document.write( "Interest from the CD will be P*(0.05)(5)<BR>\n" );
document.write( "Interest from the bond will be p(0.09)5<BR>\n" );
document.write( "Equation:<BR>\n" );
document.write( "interest + interest = interest<BR>\n" );
document.write( "0.05*5x + 0.09*5*(25000-x) = 0.08*5*25000<BR>\n" );
document.write( "-----------------<BR>\n" );
document.write( "Multiply thru by 100 to get:<BR>\n" );
document.write( "5*5x + 9*5(25000-x) = 8*525000<BR>\n" );
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document.write( "25x + 45*25000- 45x = 40*25000<BR>\n" );
document.write( "-20x = -5*25000<BR>\n" );
document.write( "x = $6250 (amt. to invest in 5% CDs)<BR>\n" );
document.write( "----<BR>\n" );
document.write( "25000-x = $18750 (amt. to invest in 9% bonds<BR>\n" );
document.write( "=================================================<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( " </SPAN>\n" );
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