document.write( "Question 1123023: Chris received $50,000 from his grandparents as a graduation gift. So, he has decided to invest the money to pay his living cost at a college, which is $3,000 a year. There are two options: a bond that pays 12% and a CD that pays 5%. How much should he invest in the bond? \n" ); document.write( "

Algebra.Com's Answer #739234 by ikleyn(52782) $\"\"$ $\"About$

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document.write( "Let x= \"How much should he invest in the bond\".\r\n" );
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document.write( "Then the rest, which is (50000-x) dollars, he invests in CD.\r\n" );
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document.write( "His yearly interest from the bond is 0.12x, according to the condition.\r\n" );
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document.write( "His interest from the CD is 0.05*(50000-x) dollars.\r\n" );
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document.write( "Your equation is\r\n" );
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document.write( "    interest + interest       = total interest,    or\r\n" );
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document.write( "    0.12x    + 0.05*(50000-x) = 3000  dollars.\r\n" );
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document.write( "Simplify and solve for x:\r\n" );
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document.write( "    0.12x + 0.05*50000 - 0.05x = 3000,\r\n" );
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document.write( "    0.07x = 3000 - 0.05*50000\r\n" );
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document.write( "    x =  = 7142.86.\r\n" );
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document.write( "Answer.  He should invest  $7142.86 at 12% and the rest  $50000 - $7142.86 = $42857.14 at 5%.\r\n" );
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document.write( "Check.   0.12*7142.86 + 0.05*42857.14 = 3000.00   ! Correct !\r\n" );
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\n" ); document.write( "\n" ); document.write( "It is a typical and standard problem on investment.\r
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\n" ); document.write( "\n" ); document.write( "To see many other similar solved problems on investment, look into the lesson\r
\n" ); document.write( "\n" ); document.write( " - Using systems of equations to solve problems on investment\r
\n" ); document.write( "\n" ); document.write( "in this site.\r
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\n" ); document.write( "\n" ); document.write( "You will find there different approaches (using one equation or a system of two equations in two unknowns), as well as
\n" ); document.write( "different methods of solution to the equations (Substitution, Elimination).\r
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\n" ); document.write( "\n" ); document.write( "Also, you have this free of charge online textbook in ALGEBRA-I in this site\r
\n" ); document.write( "\n" ); document.write( " - ALGEBRA-I - YOUR ONLINE TEXTBOOK.\r
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\n" ); document.write( "\n" ); document.write( "The referred lesson is the part of this online textbook under the topic \"Systems of two linear equations in two unknowns\".\r
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\n" ); document.write( "\n" ); document.write( "Save the link to this online textbook together with its description\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "Free of charge online textbook in ALGEBRA-I
\n" ); document.write( "https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson\r
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\n" ); document.write( "\n" ); document.write( "to your archive and use it when it is needed.\r
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