document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=567642>Question 567642</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Betsy a retiree, requires $5000 per year in extra income.she has $60000 to invest and can invest in B-rated bonds paying 13% per year or in a certificate of deposit paying 3% per year. How much money should be invested in each to realize exactly $5000 in interest per year?\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #366654 by </B><A HREF=/tutors/aboutme.mpl?userid=Earlsdon><B>Earlsdon(6294)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Earlsdon><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=366654\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Let x = the amount Betsy will invest in the B-rated bonds paying 13% per annum.<BR>\n" );
document.write( "The remaining amount, $60,000-x, she will invest in the certificate of deposit paying 3% per annum.<BR>\n" );
document.write( "We can express the earnings on these two investments, after converting the percentages to their decimal equivalents, as:<BR>\n" );
document.write( "0.13x+0.03(60000-x) and this is to earn a total of $5,000<BR>\n" );
document.write( "Now we can write the necessary equation to solve for x.<BR>\n" );
document.write( "0.13x+0.03(60000-x) = 5000 Simplify.<BR>\n" );
document.write( "0.13x+1800-0.03x = 5000 Combine the x-terms.<BR>\n" );
document.write( "0.1x+1800 = 5000 Subtract 1800 from both sides.<BR>\n" );
document.write( "0.1x = 3200 Divide both sides by 0.1<BR>\n" );
document.write( "x = 32000<BR>\n" );
document.write( "So Betsy needs to invest $32,000 in the B-rated bonds paying 13% interest and the remainder ($60,000-$32,000 = $28,000) in the certificate of deposit paying 3% interest to obtain $5,000 in interest per annum. </SPAN>\n" );
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