document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1206260>Question 1206260</A>: <I><SPAN STYLE=\"word-break: break-all;\"> ou have 50000 to invest and requier an annual return of 7000. you can invest your money in bonds, which pay a return of 15% per year, or you can invest in a certificate of deposit which pays 7% per year. how much money should you invest in each to realize exactly $7000 in interest per year? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #843557 by </B><A HREF=/tutors/aboutme.mpl?userid=greenestamps><B>greenestamps(13200)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=greenestamps><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/cgi-bin/show-face.mpl?user=greenestamps><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=843557\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <br><BR>\n" );
document.write( "The other tutor has shown a good typical formal algebraic solution.<br><BR>\n" );
document.write( "For any 2-part \"mixture\" problem like this, there is another (informal) method that is usually faster than solving an algebraic equation.  For this problem....<br><BR>\n" );
document.write( "(1) Calculate that a return of $7000 on an investment of $50000 is a rate of 14%.<BR>\n" );
document.write( "(2) Using a number line if it helps, observe/calculate that 14% is 7/8 of the way from 7% to 15%.<BR>\n" );
document.write( "(3) That means 7/8 of the total $50000 needs to be invested at the higher rate.<br><BR>\n" );
document.write( "ANSWERS:  (7/8) of $50000 = $43750 at 15%; (1/8) of $50000 = $6250 at 7%<br><BR>\n" );
document.write( "CHECK: .15($43750)+.07($6250) = $6562.50+$437.50 = $7000<br><BR>\n" );
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