document.write( "Question 1196552: 1) Betsy, a recent retiree, requires $6000 per year in extra income. She has $50,000 to invest and can in vest in B-rated bonds paying 15% per year or in a certificate of deposit (CD) paying 7% per year. How much money should be invested in each to realize exactly $6000 in interest per year?
\n" ); document.write( "2) After 2 years, Betsy (see Problem 1) finds that she will now require $7000 per year. Assuming that the remaining information is the same, how should the money be reinvested? \n" ); document.write( "

Algebra.Com's Answer #829435 by ewatrrr(24785) $\"\"$ $\"About$

You can put this solution on YOUR website!

\r\n" );
document.write( "Hi \r\n" );
document.write( "Let 'x' represent amount invested at 15%\r\n" );
document.write( "I. .07(50000-x) + .15x = $6000\r\n" );
document.write( "   .08x = 6000-.07*50,000\r\n" );
document.write( "      x = 2500/.08\r\n" );
document.write( "      x =$31,250  invested at 15%, $18,750 at 7%\r\n" );
document.write( "II.\r\n" );
document.write( "Set up the same:\r\n" );
document.write( "Let 'x' represent amount invested at 15%\r\n" );
document.write( " .07(50000-x) + .15x = $7000\r\n" );
document.write( "  .08x = 7000 - 3500\r\n" );
document.write( "     x = 3500/.08\r\n" );
document.write( "     x = $43,750 at 15%,  $6,250 at 7%\r\n" );
document.write( "\r\n" );
document.write( "Wish You the Best in your Studies.\r\n" );
document.write( "

\n" ); document.write( " \n" ); document.write( "

\n" );