SOLUTION: Your grandmother needs your help. She has $50,000 to invest. Part of this money is to be invested in noninsured bonds paying 15% annual interest. The rest of this money is to be in
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Question 670470: Your grandmother needs your help. She has $50,000 to invest. Part of this money is to be invested in noninsured bonds paying 15% annual interest. The rest of this money is to be invested in a government-insured certificate of deposit paying 7% annual interest. She told you that she requires a total $6000 per year in extra income from these investments. How much money should be placed in each investment Answer by mananth(16946) (Show Source):
You can put this solution on YOUR website! Part I 15.00% per annum ------------- Amount invested =x
Certificates 7.00% per annum ------------ Amount invested = y
50000
Interest----- 6000
Part I 15.00% per annum ---x
Certificates 7.00% per annum ---y
Total investment
x + 1 y= 50000 -------------1
Interest on both investments
15.00% x + 7.00% y= 6000
Multiply by 2
15 x + 7 y= 600000.00
Multiply (1) by -15
we get
-15 x -15 y= -750000.00
Add this to (2)
0 x -8 y= -150000
divide by -8
y = 18750
Part I 15.00% $ 31250
Certificates 7.00% $ 18750
