document.write( "Question 1123687: Ken just retired, and has $650,000 to invest. A very safe Certificate of Deposit (CD) account pays 1%, while a riskier bond fund pays 5% in interest. Ken figures he needs $23,000 a year in interest to live on. How much should he invest in each account to make enough interest while minimizing his risk? \n" ); document.write( "

Algebra.Com's Answer #740049 by ikleyn(52803) $\"\"$ $\"About$

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document.write( "0.05*x + 0.01*(650000-x) = 23000\r\n" );
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document.write( "0.05*x + 65000 - 0.01x = 23000\r\n" );
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document.write( "0.04x = 23000-6500 = 16500\r\n" );
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document.write( "x =  = 412500.\r\n" );
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document.write( "Answer.  Invest $412500 to the 5% bond and the rest, $650000 - $412500 = $237500 to the 1% CD.\r\n" );
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document.write( "Check.   0.05*412500 + 0.01*237500 = 23000 dollars.   ! Correct !\r\n" );
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\n" ); document.write( "\n" ); document.write( "Solved.\r
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\n" ); document.write( "\n" ); document.write( "Notice that the given data admits only one solution and does not leave the room to minimize the risk.\r
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\n" ); document.write( "\n" ); document.write( "It is a standard and typical problem on investments.\r
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\n" ); document.write( "\n" ); document.write( "If you need more details, or if you want to see other similar problems solved by different methods,
\n" ); document.write( "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( "\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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