SOLUTION: Your grandmother needs your help. She hs $50,000 to invest. Part of the money is to be invested in noninsured bonds paying 14% annual interest. The rest of the money is to be inv

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Your grandmother needs your help. She hs $50,000 to invest. Part of the money is to be invested in noninsured bonds paying 14% annual interest. The rest of the money is to be inv      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 464664: Your grandmother needs your help. She hs $50,000 to invest. Part of the money is to be invested in noninsured bonds paying 14% annual interest. The rest of the money is to be invested in a government-insured certificate of deposit paying 9% annual interest. She told you that she requires a total of $5200 per year in extra income from these investments. How much money should be placed in each investment?
Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
5200 = 0.14x + (50,000 - x)0.09
==> 5200 = 0.14x + 4500 - 0.06x
==> 700 = 0.05x
==> x = 14,000, the amount that should be invested in 14%, and
50,000 - x = 36,000, the amount that should be invested in 9%.