Question 833446: Betsy, a recent retiree, requires $5,000 a year per extra income. She has $70,000 to invest and can invest in B-rated bonds paying 17% per year or in a certificate of deposit (CD) paying 7% a year. How much money should be invested in each to realize exactly $5,000 in interest each year?
The amount invested at 17% is??
The amount invested at 7% is??
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! Betsy, a recent retiree, requires $5,000 a year per extra income. She has $70,000 to invest and can invest in B-rated bonds paying 17% per year or in a certificate of deposit (CD) paying 7% a year. How much money should be invested in each to realize exactly $5,000 in interest each year?
The amount invested at 17% is??
The amount invested at 7% is??
***
let x=amount invested at 17%
70000-x=amount invested at 7%
17%x+7%(70000-x)=5000
.17x+4900-.07x=5000
.10x=100
x=1000
70000-x=69000
The amount invested at 17% is $1,000
The amount invested at 7% is $69,000
|
|
|
