Question 1168617
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Betsy, a recent​ retiree, requires ​$6,000 per year in extra income. She has ​$50,000 to invest and can invest 
in​ B-rated bonds paying ​13% per year or in a certificate of deposit​ (CD) paying ​5% per year. 
How much money should be invested in each to realize exactly ​$6,000
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<pre>
She invests x dollars to 13% bonds and the rest 50000-x dollars to 5% CD.


To find the unknown x, we write the total interest equation

    0.13x + 0.05*(50000-x) = 6000  dollars.


Next, from this equation we express x and calculate

    x = {{{(6000-0.05*50000)/(0.13-0.05)}}} = 43750  dollars.


<U>ANSWER</U>.  She invests $43750 to the 13% bonds and the rest 50000-43750 = 6250 dollars to CD.


<U>CHECK</U>.  0.13*43750 + 0.05*6250 = 6000  dollars.   ! Precisely correct !
</pre>

Solved.


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It is a standard and typical problem on investments.


If you need more details,  &nbsp;or if you want to see other similar problems solved by different methods, &nbsp;look into the lesson 

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/coordinate/lessons/Using-systems-of-equations-to-solve-problems-on-investment.lesson>Using systems of equations to solve problems on investment</A>

in this site.


You will find there different approaches &nbsp;(using one equation or a system of two equations in two unknowns), &nbsp;as well as 
different methods of solution to the equations &nbsp;(Substitution, &nbsp;Elimination).


Also, &nbsp;you have this free of charge online textbook in ALGEBRA-I in this site

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson>ALGEBRA-I - YOUR ONLINE TEXTBOOK</A>.


The referred lesson is the part of this online textbook under the topic &nbsp;"<U>Systems of two linear equations in two unknowns</U>".



Save the link to this online textbook together with its description


Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson


to your archive and use it when it is needed.