document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1199487>Question 1199487</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Betsy, a recent retiree, requires $6000 per year in extra income. She has $50,000 to invest and can invest 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.\r<BR>\n" );
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document.write( "Let me see.\r<BR>\n" );
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document.write( "The equation I seek should show the following:\r<BR>\n" );
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document.write( "Bonds + CD = Total\r<BR>\n" );
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document.write( "Let x = amount of money that should be invested in each account\r<BR>\n" );
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document.write( "Bonds = 0.07x\r<BR>\n" );
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document.write( "CD = 0.15(50,000 - x)\r<BR>\n" );
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document.write( "Here is my equation:\r<BR>\n" );
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document.write( "0.07x + 0.15(50,000 - x) = 6000\r<BR>\n" );
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document.write( "Is this the correct set up?  </SPAN>\n" );
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document.write( "You have the bonds and CD interest rates mixed up.<BR>\n" );
document.write( "Also, your phrasing to set up x is incorrect.\r<BR>\n" );
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document.write( "This is one way to set up the equation.\r<BR>\n" );
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document.write( "x = amount invested in the bonds<BR>\n" );
document.write( "50,000 - x = amount invested in the CD<BR>\n" );
document.write( "The two amounts add to $50,000\r<BR>\n" );
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document.write( "The bonds account pays 15% return<BR>\n" );
document.write( "0.15x = amount earned from the bonds\r<BR>\n" );
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document.write( "While the CD gives 7%<BR>\n" );
document.write( "0.07(50,000-x) = amount earned from the CD\r<BR>\n" );
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document.write( "Add up those items to get the total amount earned<BR>\n" );
document.write( "<font color=red>0.15x + 0.07(50,000-x) = 6000</font><BR>\n" );
document.write( "it is set equal to 6000 since this is the desired amount Betsy wants to earn per year in extra income.\r<BR>\n" );
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document.write( "An alternative equation.\r<BR>\n" );
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document.write( "y = amount invested in the CD<BR>\n" );
document.write( "50,000 - y = amount invested in the bonds<BR>\n" );
document.write( "I'm using another variable to avoid confusion.\r<BR>\n" );
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document.write( "The bonds account pays 15% return<BR>\n" );
document.write( "0.15(50,000-y) = amount earned from the bonds\r<BR>\n" );
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document.write( "While the CD gives 7%<BR>\n" );
document.write( "0.07y = amount earned from the CD\r<BR>\n" );
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document.write( "Add up those items to get the total amount earned<BR>\n" );
document.write( "<font color=red>0.15(50,000-y) + 0.07y = 6000</font>\r<BR>\n" );
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document.write( "This matches what you have, but you used x instead of y. <BR>\n" );
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