Posted by **Lisa** on Wednesday, October 6, 2010 at 4:57pm.

Betsy, a recent retiree, requires $6,000 per year in extra income. She has $60,000 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 $6,000 in interest per year?

The amount of money invested at 13%?

The amount of money invested at 3%?

- Math -
**Henry**, Thursday, October 7, 2010 at 8:27pm
Investments:

x dollars @ 13%,

y dollars @ 3%,

x + y = 60000,

0.13x + 0.03y = 6000,

Multiply the 1st Eq by -0.13:

-0.13x - 0.13y = -7800,

0.13x + 0.03y = 6000,

Add the 2 Eqs:

-0.1y = -1800,

y = 18000,

Substitute 18000 for y in the 1st Eq:

x + 18000 = 60000,

x = 60000 - 18000 = 42000.

She invested:

$42000 @ 13%,

$18000 @ 3%.

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