document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=133751>Question 133751</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A retired couple has $130,000 to invest to obtain annual income. They want some of it invested in safe Certificates of Deposit yielding 5%. The rest they want to invest in AA bonds yielding 11% per year. How much should they invest in each to realize exactly $11,900 per year?  <BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #97875 by </B><A HREF=/tutors/aboutme.mpl?userid=ptaylor><B>ptaylor(2198)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ptaylor><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=ptaylor><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=97875\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Interest(I) equals Principal(P) times Rate(R) times Time(T) or I=PRT\r<BR>\n" );
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document.write( "Let P=amount invested in CD's @ 5%<BR>\n" );
document.write( "Interest on this investment=P*0.05*1 or 0.05P\r<BR>\n" );
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document.write( "Then 130000-P=amount invested in AA bonds @ 11%<BR>\n" );
document.write( "Interest on this investment=(130000-P)*0.11*1 or 0.11(130000-P)\r<BR>\n" );
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document.write( "Now we are told that the interest on these two investments needs to equal 11,900 so our equation to solve is:\r<BR>\n" );
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document.write( "0.05P+0.11(130,000-P)=11,900 simplify<BR>\n" );
document.write( "0.05P+14,300-0.11P=11,900  subtract 14,300 from each side\r<BR>\n" );
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document.write( "0.05P+14,300-14,300-0.11P=11,900-14,300  collect like terms\r<BR>\n" );
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document.write( "-0.06P=-2400  divide both sides by -0.06\r<BR>\n" );
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document.write( "P=40,000 ------------amount invested on CD's at 5%\r<BR>\n" );
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document.write( "130,000-P=130,000-40,000=90,000------------amount invested in AA bonds at 11%\r<BR>\n" );
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document.write( "CK<BR>\n" );
document.write( "40,000*0.05+90,000*0.11=11,900<BR>\n" );
document.write( "2000+9900=11,900<BR>\n" );
document.write( "11,900=11,900\r<BR>\n" );
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document.write( "Hope this helps---ptaylor\r<BR>\n" );
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