Question 1196544: A recently retired couple have $150,000 to invest in two different accounts: a bank certificate, and a local state bond. They need to earn $12,000 in interest per year from these investments to supplement their Social Security, but no more than that - they run the risk of changing tax brackets if they earn too much from these accounts. The bank certificate pays 5% interest, and the bond pays 10% interest. Set up a system of equations to calculate how much they should invest in each account
Answer by ikleyn(52776)   (Show Source):
You can put this solution on YOUR website! .
Let x represents the amount invested at 5% annual interest,
and let y be the amount invested at 10% annual interest.
The system of equations is
x + y = 150000 dollars (1)
0.05x + 0.10y = 12000 dollars (2)
Equation (1) says that the total invested amount of the two accounts is $150,000.
Equation (2) says that the total annual interest of the two accounts is $12,000.
The setup is complete; the question is answered and the problem is solved.
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