SOLUTION: Betsy, a recent retiree, requires $5,000 per year in extra income. She has $60,000 to invest and can invest in B-rated bonds paying 13% per year or in a certific
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Question 1143896: Betsy, a recent retiree, requires $5,000 per year in extra income. She has $60,000 to invest and can invest in B-rated bonds paying 13% per year or in a certificate of deposit (CD) paying 3% per year. How much money should be invested in each to realize exactly $5,000 in interest per year? Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! x at .13 yield for 0.13x
60000-x (the rest) at .03 yield for 1800-.03x
they add to $5000
so, 0.13x+1800-0.03x=5000
0.10x=3200
x=$32000 at .13=$4160
60000-x=$28000 at .03=$840
They add to $5000.
