Posted by **Hannah** on Sunday, September 19, 2010 at 9:39pm.

Betsy, a recent retiree, requires $6,000 per year in extra income. She has $70,000 to invest and can invest in B-rated bonds paying 17% per year or in a CD paying 7% per year. How much money should be invested in each to realize exactly $6,000 in interest per year?

I do not know what to do for this.

- Math(Please help) -
**MathMate**, Sunday, September 19, 2010 at 9:50pm
For B-rated bonds at 17%, she gets

$70000*0.17=$11900 per year

In CD at 7%, she gets

$70000*0.07=$4900 per year.

If she invests $x in B-rated bonds, and $(70000-x) in CD, she should get $6000, or

$x*0.17+(70000-x)*0.07 = 6000

Solve for x

- Math(Please help) -
**Hannah**, Monday, September 20, 2010 at 1:19pm
Would x be $4,583.33?

From the equation x(o.17) + (70,000-x)(0.07) = 6,000

I got 0.17x + 4,900 -0.07x = 6,000 and then I subtracted 4,900 from 6,000 and I added 0.07 to 0.17 and got 0.24x. Is this correct?

- Math(Please help) -
**MathMate**, Monday, September 20, 2010 at 5:35pm
6000-4900=1100 is correct, but

0.17x-0.07x=0.1x (not add)

So x=4583.33 is not correct (it should be more than double 4583.)

The easiest way to check is to put x back in the equation and see if it comes out to be $6000.

## Answer This Question

## Related Questions

- math(Please help) - Betsy, a recent retiree, requires $6,000 per year in extra ...
- Math - Betsy, a recent retiree, requires $6000 per year in extra income. She has...
- COLLEGE ALGEBRA - Sue, a recent retiree, requires $6,000 per year in extra ...
- Math - Betsy, a recent retiree, requires $6,000 per year in extra income. She ...
- Math Word Problem - 2) After 2 years, Betsy finds she now will require $7,000 ...
- intermediate math - maria has recently retired and requires an extra $7200 per ...
- math - Cyndee wants to invest $50,000. Her financial planner advises her to ...
- math - linear programming - A woman wishes to invest $12,000 in three of bonds: ...
- Algebra 2 - A company placed $1,000,000 in three different accounts. It placed ...
- Algebra 2 - A company placed $1,000,000 in three different accounts. It placed ...

More Related Questions