document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1206271>Question 1206271</A>: <I><SPAN STYLE=\"word-break: break-all;\"> ​Betsy, a recent​ retiree, requires ​$6,000 per year in extra income.  She has ​$50,000 to invest and can invest in​ B-rated bonds paying 17​% per year or in a certificate of deposit​ (CD) paying 7​% per year.  How much money should be invested in each to realize exactly ​$6,000  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 #843585 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=843585\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <br><BR>\n" );
document.write( "The other tutor showed a good formal algebraic solution.<br><BR>\n" );
document.write( "Note, however, that the numbers in this problem make for an easy mental solution.<br><BR>\n" );
document.write( "$6000 return on an investment of $50,000 is a rate of 12%, which simple mental calculations show is exactly halfway between 7% and 17%.  That means equal amounts need to be invested in the bonds and CDs.<br><BR>\n" );
document.write( "ANSWER: $25,000 in bonds and $25,000 in CDs<br><BR>\n" );
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