SOLUTION: Betsy, a recent retiree, requires $6000 per year in extra income. She has $50,000 to invest and can invest in B-rated bonds paying 15% per year or in a certificate of deposit (CD)

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: Betsy, a recent retiree, requires $6000 per year in extra income. She has $50,000 to invest and can invest in B-rated bonds paying 15% per year or in a certificate of deposit (CD)       Log On


   

Question 223627: Betsy, a recent retiree, requires $6000 per year in extra income. She has $50,000 to invest and can invest in B-rated bonds paying 15% per year or in a certificate of deposit (CD) paying 7% per year. How much money should be invested in each to realize exactly $6000 interest per year?
Answer by checkley77(12844) About Me  (Show Source):
You can put this solution on YOUR website!
.15x+.07(50,000-x)=6,000
.15x+3,500-.07x=6,000
.08x=6,000-3,500
.08x=2,500
x=2,500/.08
x=31,250 invested @ 15 %.
50,000-31,250=18,750 amount invested @ 7%.
Proof:
.15*31,250+.07*18,750=6,000
4,687.50+1,312.50=6,000
6,000=6,000