Question

Betsey, 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 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 $6,000 in interest per year?

Answer 1

amount@15% = (6000 - 50000(.07))/(.15 - .07); i think

Answer 2

31250(.15) + (the rest)(.07) = 6000 ??

Answer 3

Which part is correct? I got a different answer?

Answer 4

31250 @ 15% is correct; which means 18750 @ 7% is left

Answer 5

http://www.google.com/search?aq=f&sourceid=chrome&ie=UTF-8&q=(6000+-+50000(.07))%2F(.15+-+.07)#sclient=psy&hl=en&source=hp&q=31250(.15)+%2B+18750(.07)&pbx=1&oq=31250(.15)+%2B+18750(.07)&aq=f&aqi=&aql=&gs_sm=e&gs_upl=68413l86697l5l87476l46l30l3l0l0l5l218l3200l12.13.2l27&bav=on.2,or.r_gc.r_pw.&fp=12d91d587ca5007f&biw=1024&bih=677

Answer 6

you need 2 amounts; a and b

a+b total to 50,000;

a+b = 50000

a @ 7% + b@15% = 6000, to wit
.................................................


a +b = 50000 ; *-.07
a(.07) + b(.15) = 6000



-a(.07) -b(.07) = -50000(.07)
a(.07) + b(.15) = 6000
------------------------------
b(.15-.07) = (6000 - 50000(.07))

b = (6000 - 50000(.07))/(.15-.07)