SOLUTION: A retired couple has $170,000 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
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Question 975979: A retired couple has $170,000 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 12% per year. How much should they invest in each to realize exactly $16,900? Answer by solver91311(24713) (Show Source):
Let represent the amount invested at 12%. Then is the annual return on the investment. If is the portion of $170,000 that was invested at , then the amount invested at 5% must be and the annual return is . The two returns must sum to the desired annual income realization:
Solve for
John
My calculator said it, I believe it, that settles it
