SOLUTION: Betsy a recent retiree, requires $5,000 per year in extra income. She has $70,000 to invest and can invest in B-rated bonds paying 13% per year or in a certificate of deposit (CD)
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Question 564668: Betsy a recent retiree, requires $5,000 per year in extra income. She has $70,000 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 josmiceli(19441) (Show Source):
You can put this solution on YOUR website! Let = amount invested in bonds = amount invested in CD
given:
$29,000 should be invested in bonds
$41,000 should be invested in CD
