document.write( "Question 1065425: A retired woman has $80,000 to invest but needs to make $3,000 a year from the interest to meet certain living expenses. One bond investment pays 15% annual interest. The rest of it she wants to put in a CD that pays 7%. \r
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Algebra.Com's Answer #853946 by MathTherapy(10803) $\"\"$ $\"About$

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document.write( "A retired woman has $80,000 to invest but needs to make $3,000 a year from the interest to meet certain living expenses.\r\n" );
document.write( "One bond investment pays 15% annual interest. The rest of it she wants to put in a CD that pays 7%. \r\n" );
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document.write( "If we let x be the amount the woman invests in the 15% bond, how much in dollars will she be able to invest in the CD? \r\n" );
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document.write( "She can NEVER invest any part of $80,000 in both instruments, simultaneously, to acquire $3,000 annually!\r\n" );
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document.write( "To secure annual interest income of $3,000, she'd just have to invest  in the\r\n" );
document.write( "smaller-interest investment: the CD, which \"pays\" 7%. No FURTHER investment would be required. As a\r\n" );
document.write( "result, $37,142.86 would remain uninvested. \r\n" );
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document.write( "If investing in the bond instead, only $20,000 () would be needed to secure $3,000, annually, thereby\r\n" );
document.write( "leaving $60,000 uninvested.\r\n" );
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document.write( "Bottom LINE: At these interest rates, she wouldn't need to invest the entire $80,000 in both the CD and the\r\n" );
document.write( "bond. Either would suffice, with funds left over.

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