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Math(Please help)

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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) -

    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) -

    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) -

    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.

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